Question
Company net income last year was $37,000. The company paid a cash dividend of $2000 and did not sell or retire any property, plant and
Company net income last year was $37,000. The company paid a cash dividend of $2000 and did not sell or retire any property, plant and equipment last year. Changes in selected balance sheet accounts for the year appear below:
Increase/Decrease
Asset & Contra-Assets Accounts:
Account Receivable $6000
Inventory 5000
Prepaid Expenses (3000)
Long Term Investments 20,000
Accumulated Depreciation 26,000
Liability Accounts:
Account Payable (7000)
Income Taxes Payable 8,000
Based solely on this information, the net cash provided by operating activities under the indirect method on the statement of cash flows would be: a. $63,000 b. $32,000 c. $18,000 d. $56,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started