Question

Kentucky Company uses the indirect method to prepare the statement of cash flows. Refer to the following income​ statement: Kentucky Company Income Statement Year Ended December​ 31, 2019 Sales Revenue ​$249,000 Interest Revenue ​2,300 Gain on Sale of Plant Assets ​5,300 Total Revenues and Gains ​$256,600 Cost of Goods Sold ​124,000 Salary Expense ​43,000 Depreciation Expense ​14,000 Other Operating Expenses ​20,000 Interest Expense ​1,600 Income Tax Expense ​5,100 Total Expenses ​207,700 Net Income​ (Loss) ​$48,900 Additional information provided by the company includes the​ following: 1. Current​ assets, other than​ cash, increased by​ $21,000. 2. Current liabilities decreased by​ $1,200. Compute the net cash provided by​ (used for) operating activities.

Answer 1

Answer:

Cash flow from operating activities:  35,400‬

Explanation:

Net Income                 48,900

non-monetary terms

gain on sale of plant assets (5,300)

depreciation expense          14,000

changes in working capital:

current assest increase:     (21,000)

current liabilities decrease   (1,200)

Cash flow from operating activities:  35,400‬

Increase of current assets mean cash was used to acquired.

Decrease in current liabiltiies represnt cash erogation to settle them.