1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
jek_recluse [69]
3 years ago
11

Company AA had net income of $20,000 in 2017. Compared to previous year, Accounts Receivable decreased by $10,000, Prepaid Rent

increased by $1,000, Accounts Payable decreased by $1,000. Finally, their depreciation for 2017 was recorded as $5,000. Compute net cash provided by operating activities.
Business
1 answer:
marin [14]3 years ago
7 0

Answer: The net cash provided by operating activities is $33,000.

Explanation: The amount above was arrived at by computing the following:

Company AA

Statement of Cash Flows for the Year 2017

Net income                                                            $20,000

Add depreciation:                                                      5,000

Decrease in Accounts receivable                           10,000

Increase in Prepaid rent                                           (1,000)

Decrease in Accounts payable                                (1,000)

Net cash flows from operating activities            $33,000

Please note the following:

  • Depreciation was added back because it is non-cash item
  • Decrease in accounts receivable represents cash inflow
  • Increase in prepaid rent represents an outflow of cash
  • Decrease in accounts payable represents cash outflow

You might be interested in
APR on a loan may be adjusted based on a borrower’s
horsena [70]

APR on a loan may be adjusted based on a borrower’s

credit history

8 0
4 years ago
Read 2 more answers
What are the roles of agriculture is to maximize the production in the agricultural sector ? ​
Serhud [2]

Answer:

introduction of modern machines for harvesting

7 0
3 years ago
what ammendment isthisSixteen-year old Ryan is the captain of the football team. Before the Friday night game, he and his teamma
ad-work [718]
The fourth amendment constitutes this.
7 0
3 years ago
The workout is also referred to as the _____________ phase of a training session.
Ber [7]
A workout is also referred to as the conditioning phase of a training session
5 0
4 years ago
Wideload, Inc, makes, sells, and leases trucks, trailers, and other moving and hauling equipment for consumer use. Verna files a
blondinia [14]

Wideload, Inc, makes, sells, and leases trucks, trailers, and other moving and hauling equipment for consumer use. Verna files a product liability suit against Wideload, alleging a design defect. In deciding whether to hold the maker liable, the court may consider: The expectations of the ordinary consumer.

<h3><u>Explanation:</u></h3>

The disputes that are related to any legal sections regarding the liability of the products are subjected to a consumer expectations test. The main purpose of the conduction of this test is to ensure that the product is properly manufactured and the defectiveness in the warning information of that particular product.

A product will be concluded to be defective under this test when a consumer finds that the product is defective. In the given example, Verna files a product liability suit against Wideload, regarding the defects associated with the design. Thus, the court may consider The expectations of the ordinary consumer for making it liable.

6 0
3 years ago
Read 2 more answers
Other questions:
  • Spielberg Company's general ledger shows a checking account balance of $22,970 on July 31, 2021. The July cash receipts of $1,88
    10·1 answer
  • A spurious relationship occurs between two variables when:
    8·1 answer
  • Determine the future value of $21,000 under each of the following sets of assumptions (FV of $1, PV of $1, FVA of $1, PVA of $1,
    13·1 answer
  • The following budget information is available for the HD Sales Company (HDC) for January: Sales $ 320,000 Freight out $ .25 per
    5·1 answer
  • Smiling Elephant, Inc., has an issue of preferred stock outstanding that pays a $5.60 dividend every year, in perpetuity. If thi
    13·1 answer
  • True or false:
    10·1 answer
  • This morning, you borrowed $9,500 at 8.9 percent annual interest. you are to repay the loan principal plus all of the loan inter
    15·1 answer
  • Taveras Corporation is currently operating at 50% of its available manufacturing capacity. It uses a job-order costing system wi
    6·1 answer
  • Carrie wants to open a boat shop right next to te beach. What type of utility is she implementing
    11·1 answer
  • You are offered Birr 1,000 today, Birr 10,000 in 12 years, or Birr 25,000 in 25 years. Assuming that you can earn 11 percent on
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!