A companys income statement showed the following net income

A company\'s income statement showed the following net income, $140,000 and depreciation expense, $34,800. An examination of the company\'s current assets and current liabilities showed the following changes as a result of operating activities: accounts recelvable decreased $11,000, merchandise inventory increased $21,200; and accounts payable increased $5,000. Calculate the net cash provided or used by operating activities. Multiple Choice $134.000 $180,000 $137600 $169,600 $202,000

Solution

1) Cash flow from operating activities :

So answer is d) $169600

2) Cash flow from operating activities :

So answer is a) $144000

3) Cash received from sale of equipment = (301000-57000-199000-11700) = 33300

So answer is b) $33300

4) Cash flow from financing activities:

Retirement of bonds payable = (72000)

So answer is b) ($72000)

5) Cash received from sale of equipment = (287000-52000-194000) = 41000

So answer is d) $41000

Net income	140000
Adjustment to reconcile net income
Depreciation expense	34800
Decrease account receivable	11000
Increase merchandise inventory	-21200
Account payable increase	5000
Net cash flow from operating activities	169600