The data given below are from the accounting records of the Kuhn Corporation: Based on this information, the net cash provided by (used in) operating activities using the indirect method would be:

A) $70,000
B) $73,500
C) $64,000
D) $79,000

Question

The data given below are from the accounting records of the Kuhn Corporation:

Based on this information, the net cash provided by (used in) operating activities using the indirect method would be:

A) $70,000
B) $73,500
C) $64,000
D) $79,000

Tsakani Manganye · Accepted Answer

Final Answer : C, Explanation :  To calculate the net cash provided by operating activities using the indirect method, we start with net income of $80,000 and adjust for non-cash items such as depreciation expense of $25,000, increase in accounts receivable of $12,000, and decrease in accounts payable of $9,000. Therefore, the net cash provided by operating activities is:Net income + Depreciation expense - Increase in accounts receivable + Decrease in accounts payable= $80,000 + $25,000 - $12,000 - $9,000= $64,000.Therefore, the correct answer is C, $64,000.

The data given below are from the accounting records of the Kuhn Corporation: Based on this information, the net cash provided by (used in) operating activities using the indirect method would be:

A) $70,000
B) $73,500
C) $64,000
D) $79,000

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Learning Objectives

Related questions

The data given below are from the accounting records of the Kuhn Corporation: Based on this information, the net cash provided by (used in) operating activities using the indirect method would be:A) $70,000B) $73,500C) $64,000D) $79,000

Definitions

Learning Objectives

Learning Objectives

Related questions

The data given below are from the accounting records of the Kuhn Corporation: Based on this information, the net cash provided by (used in) operating activities using the indirect method would be:

A) $70,000
B) $73,500
C) $64,000
D) $79,000