Ayayai Corporation reported net income of $50,700 in 2020. Depreciation expense was $17,900. The following working capital accounts changed. Accounts receivable $12,000 increase Available-for-sale debt securities 17,100 increase Inventory 7,200 increase Nontrade note payable 15,400 decrease Accounts payable 13,600 increase Compute net cash provided by operating activities.

Question

Marin Mitchell

Business

24 August, 05:11

Ayayai Corporation reported net income of $50,700 in 2020. Depreciation expense was $17,900. The following working capital accounts changed. Accounts receivable $12,000 increase Available-for-sale debt securities 17,100 increase Inventory 7,200 increase Nontrade note payable 15,400 decrease Accounts payable 13,600 increase Compute net cash provided by operating activities.

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Emily Swanson · Answer 1

Ayayai Corporation

Statement of Cash Flows

For the Year Ended December 31, 202x

Cash flows from operating activities:

Net income $50,700

Adjustments to reconcile net income:

Depreciation expense $17,900 Increase in accounts payable $13,600 Increase in accounts receivable ($12,000) Increase in AFS securities ($17,100) Increase in inventory ($7,200) ($4,800)

Net cash flow provided by operating activities $45,900

Notes payable are part of the financing activities of the company, they are not part of the operating activities. So any change in the value of notes payable must be included in the cash flows from financing activities.