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Blue Spruce Corp.'s net income for the current year was $557000. Depreciation was $72000. Accounts receivable...

Blue Spruce Corp.'s net income for the current year was $557000. Depreciation was $72000. Accounts receivable and inventories decreased by $23000 and $37000, respectively. Prepaid expenses and salaries payable increased, respectively, by $2000 and $19000. Equipment was sold at a gain of $9000. How much cash was provided by operating activities?

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Answer #1

Net cash provided by Operating activities = $679,000

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Blue Spruce Corp
Statement of Cash Flows
For the Year Ended December 31
Cash flows from operating activities:
Net income $ 557,000.00
Adjustments to reconcile net income to
net cash provided by operating activities:
Gain on sale of Equipment $   (9,000.00)
Depreciation expense $ 72,000.00
Decease in accounts receivables $ 23,000.00
Decrease in inventory $ 37,000.00
Increase in prepaid expense $ (20,000.00)
Increase in salaries payable $ 19,000.00
$ 122,000.00
Net cash from Operating Activities $ 679,000.00
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