Question
In its second year of business, a company has a net income of $120,000. The following table provides year-end account information. Account Year 1 Year
In its second year of business, a company has a net income of $120,000. The following table provides year-end account information.
| Account | Year 1 | Year 2 |
| Accounts Payable | $5,000 | $4,000 |
| Accumulated Depreciation | $65,000 | $85,000 |
| Prepaid Expenses | $20,000 | $15,000 |
| Fixed Assets | $250,000 | $255,000 |
The company uses the indirect method to prepare a statement of cash flows for Year 2. How much should the company report as net cash provided by operating activities?
A. $91,000
B. $96,000
C. $119,000
D. $124,000
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Contemporary Auditing Real Issues And Cases
Authors: Michael C. Knapp
8th Edition
0538466790, 9780538466790
