The net income reported on the income statement for the current year was $240,000. Depreciation was $50,000. Accounts receivable

Question

3 years ago

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The net income reported on the income statement for the current year was $240,000. Depreciation was $50,000. Accounts receivable

decreased by $10,000 and inventories decreased by $30,000. Prepaid expenses increased by $1,000 and accounts payable increased by $8,000. How much cash was provided by operating activities? Select one: a. $337,000. b. $329,000. c. $301,000. d. $321,000.

Business

1 answer:

Ilya [14] · Answer 1 · 2022-07-28T18:38:12+03:00

Answer:

a. $337,000

Explanation:

Calculation to determine How much cash was provided by operating activities

Using this formula

Cash provided by Operating activities=Net income+Depreciation+Account receivable+Inventories decreased -Prepaid expenses+Accounts payable increased

Let plug in the formula

Cash provided by Operating activities=$240,000 + $50,000 + $10,000 + $30,000 - $1,000 + $8,000

Cash provided by Operating activities=$337,000

Therefore the cash provided by operating activities was $337,000