Question

Sheffield Corp. reported net income of $3.5 million in 2017. Depreciation for the year was $160,700, accounts receivable decreased $372,100, and accounts payable decreased $294,100. Compute net cash provided by operating activities using the indirect approach.

Answer 1

Answer:

I think

Cash flows from operating activities 

Net income $2.5 million 

Adjustments to reconcile net income to net 

cash provided by operating activities 

Decrease in accounts receivable $350,000 

Decrease in accounts payable ($280,000) 

Depreciation expense $160,000 

Net cash provided by operating activities $2,730,000

Answer 2

Hey there!

net income =$3,500,000

Depreciation = $160,700

accounts receivable decreased $372,100

accounts payable decreased ($294,1000).

net cash provided by operating activities=$3,738,700.