Solution:
<u> Particulars </u> <u>Amount</u>
<u> Net Operating Income </u> $ 196,100
Adjustments to reconcile the net to :
Net Cash provided by the operating activities.
Add the depreciation expenses $ 47,400
Add loss on disposal of plant assets $ 5,600
Add increase in the accounts receivable $ 10,900
Add increase in Accounts payable $ 12,900
Add increases in prepaid expenses <u> $ 3,200 </u>
$ 80,000
Cash balance at the end $ 276,100
