Ocean Pines Company had net income $525,000. They also had depreciation expense of $200,000, an increase or (decrease) in accounts receivable of $-30,000, and an increase or (decrease) in inventory of $-25,000

Ocean Pines Company had net income $525,000. They also had depreciation expense of $200,000, an increase or (decrease) in accounts receivable of $-30,000, and an increase or (decrease) in inventory of $-25,000. Ocean Pines prepares their Statement of Cash Flows using the indirect method. Use this information to determine the dollar value of cash provided or (used) by operating activities. If the total is a use of cash, enter as a negative number. (a negative number for accounts receivable or inventory indicates that the balance decreased)

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Expert Solution

Operating Activities
Net income	$525,000
Adjustment to reconcile net income to net cash provided by operating activities:
Add: Depreciation expense	200,000
Change in working capital: Add: Decrease in current assets
Decrease in account receivable	30,000
Decrease in inventory	25,000
Net cash provided by operating activities		$780,000

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ekkarill92 answered 2 years ago

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