Question

Norbury Corporation's net income last year was $40,000. 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 $ 17,000 $ (4,300) $ 12,500 $ 31,000 $ 16,500 $ (8,800) $ 3,400 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:

Answer 1

	Norbury Corporation
	Cash Flow from Operating Activities	Amt $
a	Net Income	$                         40,000
b	Add: Non Cash Charge : Depreciation expense	$                         31,000
	Adjustments for Working Capital changes
	Less: Increase in Accounts Receivable	$                        (17,000)
	Add: Decrease in Inventory	$                            4,300
	Less: Increase in Prepaid expense	$                        (12,500)
	Add: Increase in Accounts Payable	$                         16,500
	Less : Decrease in Accrued Liabilities	$                          (8,800)
	Add: Increase in Income Tax Payable	$                            3,400
c	Total Adjsutments due to Working Capital changes:	$                       (14,100)
d	Total Net Cash provided by Operating Activities:	$                         56,900
	So correct option is $56,900