During the current year, Hayden, Inc., had net income of $600,000. Hayden also recorded $200,000 in depreciation expense and had

Question

3 years ago

9

During the current year, Hayden, Inc., had net income of $600,000. Hayden also recorded $200,000 in depreciation expense and had

the following changes in its balance sheet accounts: Accounts Receivable $ 20,000 increase Inventories 10,000 decrease Accounts Payable 25,000 decrease Compute the net cash provided by operating activities using the indirect method.

Business

1 answer:

vitfil [10] · Answer 1 · 2022-02-26T12:24:12+03:00

Answer: $765,000

Explanation:

Net income = $600,000

Accounts Receivable - $20,000 increase Inventories - 10,000 decrease

Accounts Payable - 25,000 decrease

Net income - - - - - - - - - - - - - - - 600,000

Adjustment to reconcile net income to net cash provided by operating activities:

Depreciation - - - - - - - - - - - - - - 200,000

Decrease in inventory - - - - - - - 10,000

Decrease in account payable--- (25,000)

Increase in inventory - - - - - - - - (20,000)

Net cash - - - - - - - - - - - - - - - - - 765,000

Therefore, net cash provided by operating activities = $765,000