In: Accounting
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
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 |