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Use the following information and the indirect method to calculate the net cash provided or used...

Use the following information and the indirect method to calculate the net cash provided or used by operating activities:

Net income $ 86,900
Depreciation expense 13,600
Gain on sale of land 6,700
Increase in merchandise inventory 3,650
Increase in accounts payable 7,750

a. $17,100.

b. $16,100.

c. $97,900.

d. $31,600.

e. $38,300.

Business   Accounting   
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Answer #1

c. $97,900.

Working:

Cash flow from Operating Activities
(Indirect Method)
Net Income $       86,900
Adjustments to reconcile net income to net cash flow
from operating activities:
Depreciation Expense $       13,600
Gain on sale of land $        -6,700
Increase in merchandise inventory $        -3,650
Increase in accounts payable $         7,750
Net Cash provided by Operating Activities $       97,900
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