In Alona Company net income is $285000. If accounts receivable increased $140000 and accounts payable decreased $40000 net cash provided by operating activities using the indirect method is:

A) $105000.
B) $185000.
C) $385000.
D) $465000.

Question

Valerie Hooge · Accepted Answer

Final Answer : A, Explanation :  The net cash provided by operating activities is calculated by adjusting the net income for changes in working capital. Starting with the net income of $285,000, subtract the increase in accounts receivable ($140,000) and the decrease in accounts payable ($40,000). This results in $285,000 - $140,000 - $40,000 = $105,000.

In Alona Company net income is $285000. If accounts receivable increased $140000 and accounts payable decreased $40000 net cash provided by operating activities using the indirect method is:

A) $105000.
B) $185000.
C) $385000.
D) $465000.

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Learning Objectives

Related questions

In Alona Company net income is $285000. If accounts receivable increased $140000 and accounts payable decreased $40000 net cash provided by operating activities using the indirect method is:A) $105000.B) $185000.C) $385000.D) $465000.

Definitions

Learning Objectives

Learning Objectives

Related questions

In Alona Company net income is $285000. If accounts receivable increased $140000 and accounts payable decreased $40000 net cash provided by operating activities using the indirect method is:

A) $105000.
B) $185000.
C) $385000.
D) $465000.