Zook Incorporated, had net income from 2011 of 4,500,000. additional information

ID: 2499697 • Letter: Z

Question

Zook Incorporated, had net income from 2011 of 4,500,000. additional information is as follows: amortization of patents 45,000 depreciation on plant assets 1,650,000 long term debt: bond premium amortization 65,000 interest paid 900,000 provision for doubtful accounts: (both increased) current receivables 80,000 long-term non trade receivables 30,000 what should be the net cash provided by operating activities in the statement of cash flows for the year ended december 31, 2014, based solely on the above information? a) 6,820,000 b) 6,870,000 c) 6,740,000 d) 6,240,000

Explanation / Answer

Net Income

$4,500,000.00

Adjustments to reconcile net income to net cash provided by operating activities

1. Amortization of patents

$45,000.00

2.Depreciation on plant assets

$1,650,000.00

3. Amortization of bond premium

-$65,000.00

4. Provision for doubtful debts

$110,000.00

Net cash provided by opearting activities

$6,240,000.00