Alvez reports net income of $325,000 for the year ended December 31. It also rep

Question

Alvez reports net income of $325,000 for the year ended December 31. It also reports $104,100 depreciation expense and a $11,200 loss on the sale of equipment. Its comparative balance sheet reveals a $45,000 increase in accounts receivable, a $11,400 decrease in prepaid expenses, a $17,200 increase in accounts payable, a $14,100 decrease in wages payable, a $83,800 increase in equipment, and a $112,000 decrease in notes payable. Calculate the net increase in cash for the year.

a)$409,800.

b)$297,800

c)$225,200

d)$214,000

e)$326,000

Explanation / Answer

Net income 325000 Depreciation expense 104100 Loss on the sale of equipment 11200 Increase in accounts receivable -45000 Decrease in prepaid expenses 11400 Increase in accounts payable 17200 Decrease in wages payable -14100 Increase in equipment -83800 Decrease in notes payable -112000 Net increase in cash 214000 Option D is correct

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