Rogers Company reported net income of $35,000 for the year. During the year, accounts receivable increased by $7,000, accounts payable decreased by $3,000 and depreciation expense of $8,000 was recorded. Net cash provided by operating activities for the year is
A) $53,000.
B) $47,000.
C) $33,000
D) $37,000.

Question

Quizplus · Accepted Answer

Net cash provided by operating activities can be calculated using the indirect method: 
Net Income + Depreciation expense - Increase in accounts receivable + Decrease in accounts payable
$35,000 + $8,000 - $7,000 + $3,000 = $39,000 - $6,000 = $33,000. Therefore, the correct answer is C.

Rogers Company Reported Net Income of $35,000 for the Year