Given the following information related to net changes in working capital accounts for the Player Company:...

Given the following information related to net changes in working capital accounts for the Player Company:

	Increase	Decrease
Cash	$15,000
Trade accounts receivable (net)	8,400
Inventories		$16,200
Salaries payable (operating)		6,000
Trade accounts payable	11,000

Cash Provided by Operating Activities is $100,000. The company also indicated that depreciation expense for the year was $14,200.

Net Income is:

Select one:

a. $73,000

b. $87,200

c. $118,200

d. $103,000

e. $103,200

Solutions

Expert Solution

Answer: a. $73,000

Calculation:

Particulars	$
Cash Provided by Operating Activities	100,000
Depreciation Expenses	(14,200)
Increase in Trade accounts receivable (net)	8,400
Decrease in Inventories	(16,200)
Decrease in Salaries payable (Operating)	6,000
Increase in Trade accounts payable	(11,000)
Net Income	73,000

All the best...

ekkarill92 answered 2 years ago

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