In Wallace Company, net income is $290,000. If accounts receivable increased $140,000 and accounts payable decreased $40,000, net cash provided by operating activities using the indirect method is:
A) $110,000.
B) $190,000.
C) $390,000.
D) $470,000.

Question

Quizplus · Accepted Answer

The increase in accounts receivable ($140,000) is subtracted from net income, and the decrease in accounts payable ($40,000) is also subtracted. Thus, $290,000 - $140,000 - $40,000 = $110,000.

In Wallace Company, Net Income Is $290,000