Question

JBS Inc. recently reported net income of $3,500 and depreciation of $885. How much was its net cash provided (used) by operations, assuming it had no amortization expense, added $200 to inventories, sold none of its fixed assets, and had a $200 increase in accounts payable

Answer 1

Answer:

$4,385

Explanation:

Cash flow from Operating Activities

Net income                                                                    $3,500

Adjustment for non-cash items :

Depreciation                                                                     $885

Adjustment for Changes in Working Capital :

Increase in Inventory                                                      ($200)

Increase in accounts payable                                         $200

Net cash provided (used) by operations                     $4,385