Question

In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available:

Net income for the year was	$	62,000
Accounts payable increased by		28,000
Accounts receivable decreased by		45,000
Inventories decreased by		15,000
Cash dividends paid were		24,000
Depreciation expense was		40,000

Net cash provided by operating activities was:

Multiple Choice

$44,000.

$91,000.

$90,000.

$160,000.

$190,000.

Answer 1

	Cash Provided by Operating Activities:
	Net Income	62,000
	Add: Non Cash Expense: Depreciation Expense	40,000
	Cash Flow Before Working Capital Changes	1,02,000
	Working Capital Changes:
	Increase in Current Liabilities:
	Accounts Payable	28,000
	Decrease in Current Assets:
	Accounts Receivables	45,000
	Inventory	15,000
	Cash Provided by Operating Activities	1,90,000
	Assumed Net Income is before netting of Cash Dividends