Zook Incorporated, had net income for 2015 of $4,500,000. Additional information
ID: 2500118 • Letter: Z
Question
Zook Incorporated, had net income for 2015 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 nontrade 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, 2015, based solely on the above information?
*answer is $6,240,000, I'm just not sure how to get it :))
Explanation / Answer
Net income $4,500,000 Add:Amortisation of patents 45,000 Depreciation on plants 1,650,000 long term non traded receivable provision increase 30,000 increase in current recievables provision 80,000 less: amortisation of debt premium (65,000) Net cash flow from operating activities $6,240,000
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