A company had net income of $282,000. Depreciation expense is $26,000. During the year, accounts receivable and inventory increased by $15,000 and $40,000, respectively. Prepaid expenses and accounts payable decreased $2,000 and $14,000, respectively. There was also a loss on the sale of equipment of $17,000. How much cash was provided by operating activities? Select one: O a. $318,000. O b. $258,000. O c. $339,000. O d. $241,000.
A company had net income of $282,000. Depreciation expense is $26,000. During the year, accounts receivable and inventory increased by $15,000 and $40,000, respectively. Prepaid expenses and accounts payable decreased $2,000 and $14,000, respectively. There was also a loss on the sale of equipment of $17,000. How much cash was provided by operating activities? Select one: O a. $318,000. O b. $258,000. O c. $339,000. O d. $241,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![A company had net income of $282,000. Depreciation
expense is $26,000. During the year, accounts receivable
and inventory increased by $15,000 and $40,000,
respectively. Prepaid expenses and accounts payable
decreased $2,000 and $14,000, respectively. There was
also a loss on the sale of equipment of $17,000. How
much cash was provided by operating activities?
Select one:
O a. $318,000.
O b. $258,000.
O c. $339,000.
O d. $241,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbad8bacd-473f-4783-9a04-5854df595b31%2Fa483c6d2-f304-4781-918f-e2df953bddc7%2Fanytiy_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A company had net income of $282,000. Depreciation
expense is $26,000. During the year, accounts receivable
and inventory increased by $15,000 and $40,000,
respectively. Prepaid expenses and accounts payable
decreased $2,000 and $14,000, respectively. There was
also a loss on the sale of equipment of $17,000. How
much cash was provided by operating activities?
Select one:
O a. $318,000.
O b. $258,000.
O c. $339,000.
O d. $241,000.
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