Question

The net income for Bramble Corp. for 2022 was $264,300. For 2022, depreciation on plant assets was $65,600, and the company incurred a loss on disposal of plant assets of $30,300.
Required:
Compute net cash provided by operating activities under the indirect method, assuming there were no other changes in the company’s accounts.

Answer 1

Answer:

$360,200

Explanation:

Indirect method reconciles the Net Income to Cash from operating cashflows.

Cash flow from operating activities

Net Income                                                           $264,300

Adjust for non- cash items :

Depreciation                                                          $65,600

Loss on disposal of plant asset                            $30,300

Net Cash Provided by Operating Activities      $360,200

thus,

net cash provided by operating activities is $360,200