Question

In: Accounting

The net income reported on the income statement for the current year was $1061000. Depreciation recorded...

The net income reported on the income statement for the current year was $1061000. Depreciation recorded on plant assets was $200000. Accounts receivable and inventories increased by $56000 and $37000, respectively. Prepaid expenses and accounts payable decreased by $5000 and $51000, respectively. How much cash was provided by operating activities?

1122000

1171000

$1400000.

1078000

Solutions

Expert Solution

Answer: 1122000

Explanation

Statement of Cash Flows (Partial)
$
Cash flows from operating activities
Net income      1,061,000.00
Adjustments to reconcile net income to net Cash flows from operating activities :
Income Statement items not affecting cash;
Depreciation expense        200,000.00
Changes in current operating assets and liabilities:
Increase in Accounts receivable         (56,000.00)
Increase in Inventory         (37,000.00)
Decrease in Prepaid Expenses            5,000.00
Decrease in Accounts Payable         (51,000.00)
Net Cash Flow from Operating Activities      1,122,000.00

ekkarill92 answered 2 years ago
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