Ask Question
7 October, 13:18

A company had net income of $252,327. Depreciation expense is $21,821. During the year, Accounts Receivable and Inventory increased by $14,346 and $33,617, respectively. Prepaid Expenses and Accounts Payable decreased by $3,079 and $4,161, respectively. There was also a loss on the sale of equipment of $5,398. How much cash was provided by operating activities? Select the correct answer.

a. $279,546

b. $219,705

c. $261,357

d. $230,501

+4
Answers (1)
  1. 7 October, 13:47
    0
    Answer: Option (d) is correct.

    Explanation:

    Given that,

    Net Income = $252,327

    Depreciation expense = $21,821

    Accounts Receivable increased by = $14,346

    Inventory increased by = $33,617

    Prepaid Expenses decreased by = $3,079

    Accounts Payable decreased by = $4,161

    Loss on the sale of equipment = $5,398

    Operating Income = Net Income + Depreciation expense - Accounts Receivable - Inventory + Prepaid Expenses - Accounts Payable + Loss on the sale of equipment

    = $252,327 + $21,821 - $14,346 - $33,617 + $3,079 - $4,161 + $5,398

    = $230,501
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A company had net income of $252,327. Depreciation expense is $21,821. During the year, Accounts Receivable and Inventory increased by ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers