A company uses the indirect method to determine its cash flows from operating activities. Use the following information to determine its net cash provided or used by operating activities. Net income... $15,200 Depreciation expense...$10,000 Cash payment on note payable...$8,000 Gain on sale of land...$3,000 Increase in inventory....$1,500 Increase in accounts payable...$2,850 Multiple Choice $23,550 used by operating activities $23,550 provided by operating activities $15.550 provided by operating activities $42,400 provided by operating activities
A company uses the indirect method to determine its cash flows from operating activities. Use the following information to determine its net cash provided or used by operating activities. Net income... $15,200 Depreciation expense...$10,000 Cash payment on note payable...$8,000 Gain on sale of land...$3,000 Increase in inventory....$1,500 Increase in accounts payable...$2,850 Multiple Choice $23,550 used by operating activities $23,550 provided by operating activities $15.550 provided by operating activities $42,400 provided by operating activities
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The correct answer is $23,550 provided operating activites. I just need to know how to get that answer. Thank you!
Transcribed Image Text:A company uses the indirect method to determine its cash flows from operating activities. Use the following information to determine its net cash provided or used by operating activities.
Net income... $15,200
Depreciation expense...$10,000
Cash payment on note payable...$8,000
Gain on sale of land...$3,000
Increase in inventory....$1,500
Increase in accounts payable...$2,850
Multiple Choice
$23,550 used by operating activities
$23,550 provided by operating activities
$15.550 provided by operating activities
$42,400 provided by operating activities
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