The data given below are from the accounting records of the Kuhn Corporation: Ne
ID: 2592776 • Letter: T
Question
The data given below are from the accounting records of the Kuhn Corporation:
Net Income (accrual basis)
$45,000
Depreciation Expense
$9,000
Decrease in Accounts Payable
$2,500
Decrease in Inventory
$3,000
Increase in Bonds Payable
$10,000
Sale of Common Stock for cash
$30,000
Increase in Accounts Receivable
$4,500
Based on this information, the net cash provided by operating activities using the indirect method would be:
$55,000
$58,000
$50,000
$60,000
Net Income (accrual basis)
$45,000
Depreciation Expense
$9,000
Decrease in Accounts Payable
$2,500
Decrease in Inventory
$3,000
Increase in Bonds Payable
$10,000
Sale of Common Stock for cash
$30,000
Increase in Accounts Receivable
$4,500
Explanation / Answer
Net income 45000 Add:Depreciation expense 9000 Less:Decrease in AP (2500) Add:decrease in inventory 3000 Less:increase in AR (4500) Net cash flow from operating activiities $50,000
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