In: Accounting
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
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...