Question

In: Accounting

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...


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