Asked by
Curtis Elmore
on Nov 18, 2024
Verified
Rogers Company reported net income of $35,000 for the year. During the year, accounts receivable increased by $7,000, accounts payable decreased by $3,000 and depreciation expense of $8,000 was recorded. Net cash provided by operating activities for the year is
A) $53,000
B) $47,000
C) $33,000
D) $37,000
Net Cash
The difference between a company's total cash inflows and outflows in a given period.
Operating Activities
Activities directly related to the day-to-day operations of a business, such as selling products and services, which generate most of its revenue and cash flows.
Depreciation Expense
Allocating the value of a tangible asset over its productive life in a systematic manner.
- Absorb the process involved in calculating net cash flow from operating activities via the indirect methodology.
- Execute the indirect approach for evaluating cash flows from operating activities, given the differences in current assets and liabilities.
- Become familiar with the repercussions of depreciation and amortization on cash flow movements.
Verified Answer
AM
Learning Objectives
- Absorb the process involved in calculating net cash flow from operating activities via the indirect methodology.
- Execute the indirect approach for evaluating cash flows from operating activities, given the differences in current assets and liabilities.
- Become familiar with the repercussions of depreciation and amortization on cash flow movements.