Langley Company reported net income for 2022 in the amount of $460,000. The company's financial statements also included the following: Increase in accounts receivable$77,000 Decrease in inventory 62,000 Increase in accounts payable 250,000 Depreciation expense 107,000 Gain on sale of land 147,000 What is net cash provided by operating activities under the indirect method

Question

Business

Gregory Reeves

10 September, 12:57

Langley Company reported net income for 2022 in the amount of $460,000. The company's financial statements also included the following: Increase in accounts receivable$77,000 Decrease in inventory 62,000 Increase in accounts payable 250,000 Depreciation expense 107,000 Gain on sale of land 147,000 What is net cash provided by operating activities under the indirect method

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Xzavier Mckinney · Answer 1

The net cash provided by operating activities under the indirect method is $655,000.

Explanation:

Langley Company

Statement of cash flows (extract)

Net income $460,000

Add: Depreciation expense 107,000

Less: Gain on sale of land (147,000)

Increase in accounts receivable (77,000)

Decrease in inventory 62,000

Increase in accounts payable 250,000

Net cash provided by operating activities $655,000