Klutz Dance Studio had net income of $207,000 for the year just ended. Klutz col

Question

Klutz Dance Studio had net income of $207,000 for the year just ended. Klutz collected the following additional information to prepare its statement of cash flows for the year:

Klutz uses the indirect method to prepare its statement of cash flows. What is Klutz's net cash provided (used) by operating activities?

**PLEASE SHOW WORK SO I CAN FIGURE OUT WHAT I AM DOING WRONG, THANKS**

Decrease in accounts receivable $34,000 Increase in accounts payable $21,000 Increase in retained earnings $112,000 Cash paid for purchase of new music equipment $30,000 Depreciation expense $7,000

Explanation / Answer

**Increase in current asset and decrease in current liability is subtracted

**Decrease in current asset and increase in current liability is added.

cash flow from operating activity net income 207000 Adjustment to reconcile net income to cash provided by operating activity Add:depreciation 7000 Decrease in accounts receivable 34000 Increase in accounts payable 21000 cash provided/(used) by operating activity 269000

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