Question
1.A company had net income of 2,400,000. Depreciation expense is 260,000. During the year, Accounts Receivable and Inventory increased 150,000 and 400,000, respectively. Prepaid Expenses
1.A company had net income of 2,400,000. Depreciation expense is 260,000. During the year, Accounts Receivable and Inventory increased 150,000 and 400,000, respectively. Prepaid Expenses and Accounts Payable decreased 20,000 and 40,000, respectively. There was also a loss on the sale of equipment of 30,000. How much cash was provided by operating activities?
A.2,960,000
B.2,060,000
C.3,080,000
D.2,120,000
2.In Gentry Company, land decreased $360,000 because of a cash sale for $360,000, the equipment account increased $80,000 as a result of a cash purchase, and Bonds Payable increased $260,000 from issuance for cash at face value. The net cash provided by investing activities is
a. $360,000.
b. $540,000.
c. $280,000.
d. $260,000.
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