Question
Majorn Auto Parts Store had net income of $90,000 for the year just ended. Majorn collected the following additional information to prepare its statement of
| Majorn Auto Parts Store had net income of $90,000 for the year just ended. Majorn collected the following additional information to prepare its statement of cash flows for the year: |
| Increase in accounts receivable | $120,000 |
| Decrease in inventory | $27,000 |
| Decrease in accounts payable | $44,000 |
| Increase in retained earnings | $38,000 |
| Cash received from sale of building | $224,000 |
| Gain on sale of building | $56,000 |
| Depreciation expense | $41,000 |
| Majorn uses the indirect method to prepare its statement of cash flows. What is Majorn's net cash provided (used) by operating activities? |
$(62,000)
$50,000
$306,000
$212,000
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Auditing Cases An Interactive Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
5th International Edition
0132815591, 9780132815598
