Question

A company had net income of $234,665. Depreciation expense is $21,819. During the year, Accounts Receivable and Inventory increased by $14,768 and $26,484, respectively. Prepaid Expenses and Accounts Payable decreased by $3,796 and $7,537, respectively. There was also a loss on the sale of equipment of $7,964. How much cash was provided by operating activities?

Answer 1

Answer:

Cash generated from operating activities is $219,455

Explanation:

Because it starts from Net income, this is an indirect method. Indirect method starts with Net income.