A company had net income of $210,000. Depreciation expense is$27,000. During the year, Accounts Receivable and Inventoryincreased $17,000 and $42,000, respectively. Prepaid Expenses andAccounts Payable decreased $5,000 and $6,000, respectively. Therewas also a loss on the sale of equipment of $2,000. How much cashwas provided by operating activities?
A) $271,000
B) $175,000
C) $179,000
D) $241,000
A company had net income of $210,000. Depreciation expense is$27,000. During the year, Accounts Receivable and Inventoryincreased $17,000 and $42,000, respectively. Prepaid Expenses andAccounts Payable decreased $5,000 and $6,000, respectively. Therewas also a loss on the sale of equipment of $2,000. How much cashwas provided by operating activities?
A) $271,000
B) $175,000
C) $179,000
D) $241,000
Related questions
| a. Using theinformation for the Seville Corporation above, calculation the cashflow from operating activities. | |
| b. Using the information forthe Seville Corporation above, calculation the cash flow frominvesting activities. | |
| c. Using the information for the SevilleCorporation above, calculation the cash flow from financingactivities. | |
| Accounts payable increase | 9,000 |
| Accounts receivable increase | 4,000 |
| Accrued liabilities decrease | 3,000 |
| Amortization expenses | 6,000 |
| Cash balance Jan 1 | 22,000 |
| Cash balance Dec 31 | 1,500 |
| Cash paid as dividends | 2,900 |
| Cash paid to purchase land | 90,000 |
| Cash paid to retire bonds payable atpar | 60,000 |
| Cash received from issurance of commonstock | 35,000 |
| Cash received from sale equipment | 17,000 |
| Depreciation expenes | 29,000 |
| Gain on sale of equipment inventorydecreases | 4,000 |
| Inventory decrease | 13,000 |
| Net Income | 76,000 |
| Prepaid expenses increase | 2,000 |
Choose the correct answer for the below:
A company's income statement showed the following: net income, $135,000; depreciation expense, $35,500; and gain on sale of plant assets, $19,500. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $10,500; merchandise inventory increased $23,500; prepaid expenses decreased $7,300; accounts payable increased $4,500. Calculate the net cash provided or used by operating activities.
| 1. | $149,800. |
| 2. | $154,600. |
| 3. | $175,800. |
| 4. | $147,800. |
| 5. | $169,300. |
