Homework SourseMC Qu 48 LO 2104 2108 S Company reported net income for 2013
MC Qu. 48 LO 21-04, 21-08 S Company reported net income for 2013 in the amount of...
S Company reported net income for 2013 in the amount of $410,000. The company\'s financial statements also included the following:
What is net cash provided by operating activities under the indirect method?
$633,000.
$783,000.
$563,000.
$1,075,000.
| S Company reported net income for 2013 in the amount of $410,000. The company\'s financial statements also included the following: |
Solution
Answer is $ 633,000
Working note:
Statement of Cash flow from operating activities of S Company
For the year ending 2013
Net Income
410000
Adjustments :
Less Increase in account receivable
-75000
Add Decrease in Inventory
64000
Add Increase in accounts payable
270000
Add depreciation expense
110000
Less Gain on sale of Land
-146000
Total Adjustments
223000
Net Cash Provided by operating activity
633000
| Statement of Cash flow from operating activities of S Company | ||
| For the year ending 2013 | ||
| Net Income | 410000 | |
| Adjustments : | ||
| Less Increase in account receivable | -75000 | |
| Add Decrease in Inventory | 64000 | |
| Add Increase in accounts payable | 270000 | |
| Add depreciation expense | 110000 | |
| Less Gain on sale of Land | -146000 | |
| Total Adjustments | 223000 | |
| Net Cash Provided by operating activity | 633000 |
