A company's income statement showed the following: net income, $135,000; depreciation expense, $35,500; and gain on sale of plant assets, $9,500. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $10,500; merchandise inventory increased $23,500; prepaid expenses increased $7,300; accounts payable increased $4,500. Calculate the net cash provided or used by operating activities.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 6EA: During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of...
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A company's income statement showed the following: net
income, $135,000; depreciation expense, $35,500; and gain
on sale of plant assets, $9,500. An examination of the
company's current assets and current liabilities showed the
following changes as a result of operating activities: accounts
receivable decreased $10,500; merchandise inventory
increased $23,500; prepaid expenses increased $7,300;
accounts payable increased $4,500. Calculate the net cash
provided or used by operating activities.
Transcribed Image Text:A company's income statement showed the following: net income, $135,000; depreciation expense, $35,500; and gain on sale of plant assets, $9,500. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $10,500; merchandise inventory increased $23,500; prepaid expenses increased $7,300; accounts payable increased $4,500. Calculate the net cash provided or used by operating activities.
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