Wise Photography reported net income of $118,800 for 2017. Included in the incom

Question

Wise Photography reported net income of $118,800 for 2017. Included in the income statement were depreciation expense of $3,300, amortization expense of $3,500, and a gain on disposal of equipment of $3,800. Wise’s comparative balance sheets show the following balances.

12/31/16 12/31/17

Accounts receivable $26,800 $21,900

Accounts payable 6,400 8,900

Calculate net cash provided by operating activities for Wise Photography.

Explanation / Answer

Wise Photography Statement of Cash Flows For the year ended 2017 Amount($) Amount($) Cash flows from operating activities Net Income 118,800 Adjustments to reconcile net income to net cash provided byoperating activities Depreciation expense 3,300 Amortization expense 3,500 Gain on disposal of equipment (3,800) Decrease in accounts receivable 4,900 Increase in accounts payable 2,500 10,400 Net cash provided by operating activities 129,200

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