SOL Company reported net income for 2016 in the amount of $200,000. The company’s financial statements also included the following: Increase in accounts receivable $ 40,000 Decrease in inventory 30,000 Increase in accounts payable 100,000 Depreciation expense 52,000 Gain on sale of land 74,000 What is net cash provided by operating activities under the indirect method? a. $216,000 b. $268,000 c. $290,000 d. $416,000
SOL Company reported net income for 2016 in the amount of $200,000. The company’s financial statements also included the following: Increase in accounts receivable $ 40,000 Decrease in inventory 30,000 Increase in accounts payable 100,000 Depreciation expense 52,000 Gain on sale of land 74,000 What is net cash provided by operating activities under the indirect method? a. $216,000 b. $268,000 c. $290,000 d. $416,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
SOL Company reported net income for 2016 in the amount of $200,000. The company’s financial statements
also included the following:
Increase in
Decrease in inventory 30,000
Increase in accounts payable 100,000
Gain on sale of land 74,000
What is net cash provided by operating activities under the indirect method?
a. $216,000
b. $268,000
c. $290,000
d. $416,000
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