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Levart [38]
3 years ago
12

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

Business
1 answer:
IrinaK [193]3 years ago
8 0

Answer:

c. $94,400

Explanation:

Net cash provided or used by operating activities is computed as see below;

Net cash provided or used by operating activities = Net income + Depreciation expense - Gain on sale of land - Increase in merchandise inventory + Increase in accounts payable

Net cash provided or used by operating activities = $85,800 + $12,500 - $8,000 - $2,550 + $6,650

Net cash provided or used by operating activities = $94,400

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