Question

Multiple Choice:

Norbury Corporation's net income last year was $36,000. The company did not sell or retire any property, plant, and equipment last year. Changes in selected balance sheet accounts for the year appear below: Increases (Decreases) Asset and Contra-Asset Accounts: Accounts receivable Inventory Prepaid expenses Accumulated depreciation Liability Accounts: Accounts payable Accrued liabilities Income taxes payable $12,500 $ (3,400) $ 8,000 $22,000 $12,000 $(7,900) $ 2,500 Based solely on this information, the net cash provided by (used in) operating activities under the indirect method on the statement of cash flows would be

A) $47,500

B) $24,500

C) $81,700

D) $53,600

Answer 1

Net income	36,000
+ Accumulated Depreciation	22,000
- Accounts Receivable increase	-12,500
- prepaid expenses increase	-8,000
+ inventory decrease	3,400
+ accounts payable increase	12000
- accrued liabilities decrease	-7,900
+ income taxes increase	2,500
Net cash provided by operating activities	47,500

Option A