16. () Hoffman Company's net income for the current year was $480,000. Depreciation was $62,000. Accounts receivable and inventories decreased by $20,000 and $32,000, respectively. Prepaid expenses and salaries payable increased, respectively, by $2,000 and $16,000. Equipment was sold at a gain of $8,000. How much cash was provided by operating activities? A. $536,000. B. $600,000. C. $576,000. D. $476,000.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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16. () Hoffman Company's net income for the current year was $480,000. Depreciation was $62,000. Accounts
receivable and inventories decreased by $20,000 and $32,000, respectively. Prepaid expenses and salaries payable
increased, respectively, by $2,000 and $16,000. Equipment was sold at a gain of $8,000. How much cash was provided by
operating activities?
A. $536,000.
B. $600,000.
C. $576,000.
D. $476,000.
Transcribed Image Text:16. () Hoffman Company's net income for the current year was $480,000. Depreciation was $62,000. Accounts receivable and inventories decreased by $20,000 and $32,000, respectively. Prepaid expenses and salaries payable increased, respectively, by $2,000 and $16,000. Equipment was sold at a gain of $8,000. How much cash was provided by operating activities? A. $536,000. B. $600,000. C. $576,000. D. $476,000.
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