Question

The data given below are from the accounting records of the Kuhn Corporation: Net Income (accrual...

The data given below are from the accounting records of the Kuhn Corporation:

Net Income (accrual basis) $ 62,000
Depreciation Expense $ 17,500
Decrease in Accounts Payable $ 3,350
Decrease in Inventory $ 3,850
Increase in Bonds Payable $ 18,500
Sale of Common Stock for cash $ 31,700
Increase in Accounts Receivable $ 6,200

Based on this information, the net cash provided by (used in) operating activities using the indirect method would be:

A. $73,800

B. $84,350

C. $80,500

D. $92,300

Business   Accounting   
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Answer #1

Ans is

A $73,800

Working:-

Net income 62000
Add Depreciation 17500
Less Decrease in accounts payable -3350
Add a Decrease in inventory 3850
Less Increase in accounts receivable -6200
Net cash provided by (used in) operating activities using the indirect method would be: 73800
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