Question
2) Sears for fiscal year 2022 reports $35,000 net income and $12,000 depreciation expense. The income tax expense for the year ending 2022 is $20,000.
2) Sears for fiscal year 2022 reports $35,000 net income and $12,000 depreciation expense. The income tax expense for the year ending 2022 is $20,000. The following information is available:
December 31, 2021 December 31, 2022
Cash $35,000 $16,000
Accounts Receivable $35,000 $45,000
Inventories $70,000 $100,000
Fixed Assets $440,000 $581,000
Accumulated Depreciation $120,000 $101,000
Accounts Payable $6,000 $74,000
Wages Payable $4,000 $25,000
Show all of your work. Compute the net cash provided by operating activities for the year 2022? Use the Indirect Method.
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