A company uses the indirect method to determine its cash flows from operating activities. Use the following information to determine its net cash provided or used by operating activities. Net income... $15,200 Depreciation expense...$10,000 Cash payment on note payable...$8,000 Gain on sale of land...$3,000 Increase in inventory....$1,500 Increase in accounts payable...$2,850 Multiple Choice $23,550 used by operating activities $23,550 provided by operating activities $15.550 provided by operating activities $42,400 provided by operating activities
A company uses the indirect method to determine its cash flows from operating activities. Use the following information to determine its net cash provided or used by operating activities. Net income... $15,200 Depreciation expense...$10,000 Cash payment on note payable...$8,000 Gain on sale of land...$3,000 Increase in inventory....$1,500 Increase in accounts payable...$2,850 Multiple Choice $23,550 used by operating activities $23,550 provided by operating activities $15.550 provided by operating activities $42,400 provided by operating activities
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 40E
Question
The correct answer is $23,550 provided operating activites. I just need to know how to get that answer. Thank you!
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