Alfredo Inc. reports net income of $239,000 for the year ended December 31. It also reports $91,600 depreciation expense and a $

Question

3 years ago

5

Alfredo Inc. reports net income of $239,000 for the year ended December 31. It also reports $91,600 depreciation expense and a $

5,450 gain on the sale of equipment. Its comparative balance sheet reveals a $37,300 decrease in accounts receivable, a $16,650 increase in accounts payable, and a $13,100 decrease in wages payable. Calculate the cash provided (used) in operating activities using the indirect method.

Business

2 answers:

My name is Ann [436] · Answer 1 · 2022-08-07T08:02:09+03:00

My name is Ann [436]3 years ago

7 0

Answer:

$366,000

Explanation:

The solution is given in the attached file

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Alisiya [41] · Answer 2 · 2022-08-07T05:34:56+03:00

Answer:

Cash provided in operating activities is $ 366,000

Explanation:

Cash flow from Operating Activities:

Net profit: $ 239,000

Adjustments:

Add: Depreciation $ 91,600

Less: Gain on sale of equipment $(5,450)

Profit before working capital changes $325,150

Add: Decrease in Account Receivable $37,300

Add: Increase in Accounts Payable $16,650

Less: Decrease in Wages payable $(13,100)

Cash provided in operating activities: $366,000