Answer:
The net cash provided or used by operating activities is equal to $148,600.
Explanation:
The net cash provided or used by operating activities can be calculated using the indirect method as follows:
XTZ Co,
Calculation of The Net Cash Provided or Used by Operating Activities
(Indirect Method)
For the Year ....
<u>Particular Amount ($) </u>
Net income 134,000
Adjustment to reconcile net income:
Depreciation expense 30,000
Gain on sale of plant assets (4,000)
(Increase) decrease in current assets:
Decrease in accounts receivable 9,400
Increase in merchandise inventory (18,000)
Increase in prepaid expenses (6,200)
Increase (decrease) in current liabilities:
Increase in accounts payable <u> 3,400 </u>
Net cash provided or used by operating activities <u> 148,600 </u>
Therefore, the net cash provided or used by operating activities is equal to $148,600.
