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Alla [95]
3 years ago
14

A company had net income of $930,000 in 2016. Depreciation expense is $104,000. During the year, Accounts Receivable and Invento

ry increased $60,000 and $160,000, respectively. Prepaid Expenses and Accounts Payable decreased $8,000 and $16,000, respectively. There was also a loss on the sale of equipment of $12,000. How much cash was provided by operating activities in 2016
Business
1 answer:
enyata [817]3 years ago
4 0

Answer:Cash provided by operating activities= $818,000

Explanation:

Cash Flow from operating activities is the amount of cash generated from the inflows and outflows of the business activities in a company.

Cash Flow from operating activities in 2016

Net income                                                $930,000

Add

Depreciation                                               $104,000

Loss on sale of equipment                        $ 12,000

Prepaid expenses decrease                      $ 8,000

Deduct

Accounts receivable increase                       -$ 60,000

Inventory increase                                           -$160,000

Accounts payable decrease                            -$16,000

Cash provided by operating activities          $818,000

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Explanation:

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6 0
3 years ago
Read 2 more answers
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Alex777 [14]

Answer:

The amount of depreciation expense that should be recorded for the second year is $28,600

Explanation:

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