The net income for the year ended December 31, 2015, for Oliva Company was $1,90

Question

The net income for the year ended December 31, 2015, for Oliva Company was $1,900,000. Additional information is as follows:

Depreciation on plant assets $600,000

Amortization of leasehold improvements 340,000

Provision for doubtful accounts on short-term receivables 120,000

Provision for doubtful accounts on long-term receivables 100,000

Interest paid on short-term borrowings 80,000

Interest paid on long-term borrowings 60,000

Based solely on the information given above, what should be the net cash provided by operating activities in the statement of cash flows for the year ended December 31, 2015?

Explanation / Answer

Solution:

Net Cash Flow frpm Operating Activities = 32,00,0000

Particulars Amount Amount Oliv Company 19,00,000 Amortiazation of Leasehold 3,40,000 Depreciation on Plant Asset 6,00,000 Provision for doubtful accounts for shot-term 1,20,000 Provision for doubtful accounts for long-term 1,00,000 Interest on Short-term barrowingf 80,000 Interest on Long-term Barrowings 60,000 13,00,000

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