Question

A company had net income of $209800. Depreciation expense is $26500. During the year, Accounts Receivable and Inventory increased $16700 and $41500, respectively. Prepaid Expenses and Accounts Payable decreased $4500 and $5500, respectively. There was also a loss on the sale of equipment of $1900. How much cash was provided by operating activities?

Answer 1

Answer:

$2,000

Explanation:

Cash flow from Operating Activities

Net Income                                                         $209800

Adjustment to non-cash items :

Depreciation expense                                          $26500

Adjustment for Changes in working capital :

Accounts Receivable                                           ($16700)

Inventory increased                                             ($41500)