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Practice Question 42: In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available:
Practice Question 42: In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available:
Net income for the year was | $ | 54,500 | |
Accounts payable decreased by | 20,500 | ||
Accounts receivable increased by | 27,500 | ||
Inventories increased by | 7,500 | ||
Cash dividends paid were | 14,500 | ||
Depreciation expense was | 22,500 | ||
Net cash provided by operating activities was:
Multiple Choice
- $127,500.
- $72,000.
- $46,500.
- $32,500.
- $21,500
Practice Question 43: Use the following information and the indirect method to calculate the net cash provided or used by operating activities:
Net income | $ | 85,500 |
Depreciation expense | 12,200 | |
Gain on sale of land | 7,700 | |
Increase in merchandise inventory | 2,250 | |
Increase in accounts payable | 6,350 | |
-
$28,800.
-
$13,000.
-
$94,100.
-
$36,500.
- 14, 000
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