The net income reported on the income statement for the current year was $220000. Depreciation recorded on plant assets was $35000. Accounts receivable and inventories increased by $2000 and $8000 respectively. Prepaid expenses and accounts payable decreased by $2000 and $12000 respectively. How much cash was provided by operating activities?
A) $200000
B) $235000
C) $220000
D) $255000

Question

Quizplus · Accepted Answer

Net income: $220000
Plus: Depreciation: $35000
Plus: Increase in accounts receivable: $2000
Plus: Increase in inventory: $8000
Less: Decrease in prepaid expenses: $2000
Less: Decrease in accounts payable: $12000
Total: $235000

The Net Income Reported on the Income Statement for the Current