Asked by
Kalunga Mingiedi
on Nov 13, 2024Verified
The following data are available for Sampson Corporation. Net income $200,000 Depreciation expense 60,000 Dividends paid 90,000 Loss on sale of land 15,000 Decrease in accounts receivable 30,000 Decrease in accounts payable 45,000\begin{array} { l r } \text { Net income } & \$ 200,000 \\\text { Depreciation expense } & 60,000 \\\text { Dividends paid } & 90,000 \\\text { Loss on sale of land } & 15,000 \\\text { Decrease in accounts receivable } & 30,000 \\\text { Decrease in accounts payable } & 45,000\end{array} Net income Depreciation expense Dividends paid Loss on sale of land Decrease in accounts receivable Decrease in accounts payable $200,00060,00090,00015,00030,00045,000 Net cash provided by operating activities is:
A) $140000.
B) $260000.
C) $160000.
D) $240000.
Depreciation Expense
Depreciation expense represents the allocation of the cost of tangible assets over their useful lives.
Decrease in Payable
A reduction in the amount a company owes to its suppliers or creditors, indicating payments have been made.
Loss on Sale
The financial loss incurred when the selling price of an asset is less than its carrying amount on the books.
- Gain insight into the application of the indirect technique for ascertaining cash flows generated through operating activities.
- Acquire knowledge about the alterations required to shift net income to net cash resulted from operating activities.
- Calculate net cash provided by operating, investing, and financing activities.
Verified Answer
LH
Learning Objectives
- Gain insight into the application of the indirect technique for ascertaining cash flows generated through operating activities.
- Acquire knowledge about the alterations required to shift net income to net cash resulted from operating activities.
- Calculate net cash provided by operating, investing, and financing activities.
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