Question

Sheffield Corp. had net income of $943400 for the year ending 12/31/2022. Depreciation expense for 2022 is $116600. During the year, accounts receivable and inventory increased $63600 and $169600, respectively. Prepaid expenses and accounts payable decreased $8480 and $16960, respectively. There was also a loss on the sale of equipment of $12720. How much cash was provided by operating activities in 2022?

$1195680.

$805600.

$831040.

$1144800.

1-2-9

Answer 1

Correct answer------------$831040

Working

Statement of Cash Flows (Partial)
A. Cash Flows from Operating Activity
Net Income		$     943,400
Adjustments to reconcile net income to
net cash flow from operating activities:
Depreciation expense	$            116,600
loss on the sale of equipment	$              12,720
Changes in current operating assets and liabilities:
Increase in Inventory	$          (169,600)
Increase in Accounts Receivables	$            (63,600)
Decease in prepaid expense	$                 8,480
Decrease in Accounts Payable	$            (16,960)
		$ (112,360)
Net cash flow from Operating activities		$     831,040