Question

Norbury Corporation's net income last year was $47,000. 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	$	18,000
Inventory	$	(4,500	)
Prepaid expenses	$	13,500
Accumulated depreciation	$	33,000
Liability Accounts:
Accounts payable	$	17,500
Accrued liabilities	$	(9,000	)
Income taxes payable	$	3,600

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

Net income	$47000
Adjustments:
Depreciation	33000
Change in current assets and current liability
Accounts receivable	-18000
Inventory	4500
Prepaid expense	-13500
Accounts payable	17500
Accrued liability	-9000
Income taxes payable	3600
Net cash provided by operating activities	$65,100