Chapter 9, Problem 17SEB

Evaluate adjustments to net income under the indirect method. (LO 5). The comparative balance sheets for JayCee Company showed the following changes in current asset accounts: accounts receivable decreased by $50,000, prepaid expenses decreased by $23,000, and merchandise inventory increased by $17,000. These were all the changes in the current assets and current liability accounts (except cash). Net income for the year was $275,500. Compute net cash provided by or used by operating activities using the indirect method.