Question

Net income Depreciation expense Increase in accounts receivable Decrease in accounts payable $100,000 10,000 30,000 15,000 11. Based on the above information, what amount will the corporation report as Cash Provided by Operating Activities on the cash flow statement? A. $65,000 B. $125,000 C$155,000 D. $100,000 I Net Income Depreciation expense Gain on sale of truck Proceeds from sale of truck Decrease in accounts receivable $200,000 30,000 5,000 8,000 10,000 12. Assuming these are the only facts, what amount will the corporation report as the Cash Provided by Operating Activities on the cash flow statement? A $225,000 B. $235,000 C$253,000 D. $200,000 13. Using the information in Question #12, what amount will be reported under Cash From Investing Activities? A $3,000 B. $8,000 C$13,000 D. $5,000

Answer 1

Amount $ 1,00,000 Q-11: Net Cash provided by Operating Activities was: Particulars Net Income Add. Non Cash Expense Depreciation expense Working Capital Changes: Decrease in Accounts payable Increase in Accounts receivable Net Cash provided by Operating Activities $ 10,000 $ $ $ -15,000 -30,000 65,000 Correct answer would be Option A: $ 65,000 Amount $ 2,00,000 Q-12: Net Cash provided by Operating Activities was: Particulars Net Income Add. Non Cash Expenses and other adjustments Depreciation expense Gain on sale of Truck Working Capital Changes: Decrease in Accounts receivable Net Cash provided by Operating Activities $ $ 30,000 -5,000 $ $ 10,000 2,35,000 Correct answer would be Option B:$ 2,35,000 Q-13: Correct answer would be Option B: $8,000 Proceeds from sale of truck amount will be reported under Cash Flow from Investing Activities Let me know, if you have any questions over comments section, rate positive if you are satisfied with the solution