A company\'s income statement showed the following: net income, $141,700; deprec

Question

A company's income statement showed the following: net income, $141,700; depreciation expense, $34,200, and gain on sale of plant assets, $16,100. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $10,800; merchandise inventory increased $20,800; prepaid expenses decreased $7,600; accounts payable increased $4,300. Calculate the net cash provided or used by operating activities. $190,100 $166,800 $161,700 $160,100 $7,600

Explanation / Answer

Cash flow from Operations

Net income $141,700

Add: Depreciation Expenses 34200

Less: Gain on sale of plant asstes, (16100)

Add: accounts receivable decrease 10800

less: merchandise inventory increase (20800)

Add: prepaid Expenses decreased 7600

Add: Account payble increase 4300

net cash flow from operating activities 16170

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