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blondinia [14]
3 years ago
14

Use the following information and the indirect method to calculate the net cash provided or used by operating activities: Net in

come $ 86,600 Depreciation expense 13,300 Gain on sale of land 7,000 Increase in merchandise inventory 3,350 Increase in accounts payable 7,450 Multiple Choice $15,350. $38,000. $97,000. $31,000. $16,350.
Business
1 answer:
alukav5142 [94]3 years ago
3 0

Answer:

The correct answer is $97,000.

Explanation:

According to the scenario, the computation of the given data are as follows:

We can calculate the net cash provided by using the following formula:

Net cash = Net income + Depreciation expense - Gain on sale of land - Increase in merchandise inventory + Increase in accounts payable

By putting the following value in the formula, we get

Net Cash = $86,600 + $13,300 - $7,000 - $3,350 + $7,450

= $97,000

Hence, the net cash provided is $97,000.

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The adjusted trial balance of Warbocks Corporation at December 31, 2017 includes the following accounts: Retained Earnings $12,6
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Answer:

                                            Warbocks Corporation

Statement of retained earnings for the year ended December 31, 2017

                                                                                      Amount in $

Opening retained earnings                                           12,600

Net income for the year                                                  7,000

Dividend                                                                         <u> (5,000)</u>

Closing retained earnings                                             <u> 14,600</u>

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The retained earnings statement shows the movement in the retained earnings balance between the start and end of the year.

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