Question

Winston Company reported net income of $50,000 for the year. During the year, accounts receivable decreased by $7,000, accounts payable increased by $3,000 and depreciation expense of $5,000 was recorded. Net cash provided by operating activities for the year is Group of answer choices $40,000. $65,000. $49,000. $45,000.

Answer 1

Answer:

$65000

Explanation:

Below is the calculation:

To find the net cash from the operating activity, we are required to add depreciation, accounts payable and accounts receivables.

Net income of the company = $50000

Add- expenses of depreciation = 5000

Add - Increase in accounts payable = 3000

Add - Decrease in accounts receivable = $7000

Thus net cash from operating activity =  50000 + 5000 + 3000 + 7000 = $65000