Garagiola Company had net income in the current year of $430,000. Depreciation expense for theyear totaled $67,000. During the year the company experienced an increase in accounts receivable(all from sales to customers) of $35,000 and an increase in accounts payable (all to suppliers) of$56,000. Compute the amount of cash provided by or used for operating activities by the indirectmethod.
Garagiola Company had net income in the current year of $430,000. Depreciation expense for theyear totaled $67,000. During the year the company experienced an increase in accounts receivable(all from sales to customers) of $35,000 and an increase in accounts payable (all to suppliers) of$56,000. Compute the amount of cash provided by or used for operating activities by the indirectmethod.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Garagiola Company had net income in the current year of $430,000.
year totaled $67,000. During the year the company experienced an increase in
(all from sales to customers) of $35,000 and an increase in accounts payable (all to suppliers) of
$56,000. Compute the amount of cash provided by or used for operating activities by the indirect
method.
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