Question

A company had net income of $244,462. Depreciation expense is $21,276. During the year, Accounts Receivable and Inventory increased by $17,556 and $39,282, respectively. Prepaid Expenses and Accounts Payable decreased by $2,613 and $7,528, respectively. There was also a loss on the sale of equipment of $3,744. How much cash was provided by operating activities?

Select the correct answer.

$207,729

$252,671

$269,482

$200,241

Answer 1

Net cash provided by operating activities = $207,729

Statement of Cash Flows
Cash flows from operating activities;
Net Income		$244,462
Adjustments to reconcile net income to
Net cash provided by operating activities
Add : Depreciation Expenses	$21,276
Less : Increase In Accounts Receivables	($17,556)
Less : Increase In Inventories	($39,282)
Add : Decrease In Prepaid Expenses	$2,613
Less : Decrease In Accounts Payable	($7,528)
Add : Loss on sale of Equipment	$3,744	($36733)
Net cash provided by operating activities		$207,729