A company had net income of $282,000.Depreciation expense is $26,000.During the year, accounts receivable and inventory increased by $15,000 and $40,000, respectively.Prepaid expenses and accounts payable decreased $2,000 and $14,000, respectively.There was also a loss on the sale of equipment of $17,000.How much cash was provided by operating activities?
A)$258,000.
B)$241,000.
C)$318,000.
D)$339,000.

Question

Quizplus · Accepted Answer

Net income + Depreciation expense + Increase in accounts receivable + Increase in inventory - Decrease in prepaid expenses - Decrease in accounts payable - Loss on sale of equipment = Cash provided by operating activities$282,000 + $26,000 + $15,000 + $40,000 - $2,000 - $14,000 - $17,000 = $258,000

A Company Had Net Income of $282,000