Company had net income of $265,307. Depreciation expense is $27,888. During the year, Accounts Receivable and Inventory increased by $17,637 and $28,123, respectively. Prepaid Expenses and Accounts Payable decreased by $2,852 and $4,066, respectively. There was also a loss on the sale of equipment of $7,873. How much cash was provided by operating activities? Select the correct answer. $301,068 $238,348 $291,796 $254,094

Question

Business

Drake Savage

11 November, 15:16

Company had net income of $265,307. Depreciation expense is $27,888. During the year, Accounts Receivable and Inventory increased by $17,637 and $28,123, respectively. Prepaid Expenses and Accounts Payable decreased by $2,852 and $4,066, respectively. There was also a loss on the sale of equipment of $7,873. How much cash was provided by operating activities? Select the correct answer. $301,068 $238,348 $291,796 $254,094

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Answers (1)

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Kaden Norris · Answer 1

option D is the correct answer - $254094

Explanation:

As per the given data in the question, the following is used to calculate the net cash from the operating activities.

Net Income = 265307

Add : Depreciation = 27888

Less Increase in Account receivable = (17637)

Less Increase in Closing stock = ($28123)

Add : Prepaid Expenses (Decrease) = 2852

Less: Decrease in Accounts payable = (4066)

Add: Loss on sale of Asset (not Operating in nature) = 7873

Therefore, the Net cash from operating activities = $254094