The net income reported on the income statement for the current year was $220,000.

Depreciation was $50,000. Accounts receivable and inventories decreased by $10,000 and $30,000, respectively.

Prepaid expenses and accounts payable increased, respectively, by $1,000 and $8,000.

How much cash was provided by operating activities?

a. $281,000

b. $317,000

c. $301,000

d. $239,000

Question

Lilyana Guerra

Business

5 December, 18:22

The net income reported on the income statement for the current year was $220,000.

Depreciation was $50,000. Accounts receivable and inventories decreased by $10,000 and $30,000, respectively.

Prepaid expenses and accounts payable increased, respectively, by $1,000 and $8,000.

How much cash was provided by operating activities?

a. $281,000

b. $317,000

c. $301,000

d. $239,000

+5

Answers (1)

Know the Answer?

Boston Simmons · Answer 1

B) USD 317,000/-

Explanation:

By adding reported values and subtracting payable we will get a derivation like below:

= 220,000+50,000+10,000+30,000-1000+8000

= USD 317,000/-