The following data relate to Austin Corporation for last year:

What is the net cash provided by operating activities for last year on the statement of cash flows for Austin Corporation?
A)$165,000
B)$123,000
C)$169,000
D)$137,000

Question

The following data relate to Austin Corporation for last year:

What is the net cash provided by operating activities for last year on the statement of cash flows for Austin Corporation?
A)$165,000 
B)$123,000 
C)$169,000 
D)$137,000

Quizplus · Accepted Answer

The net cash provided by operating activities is calculated as follows:
Operating income: $210,000
Adjustments for non-cash items:
Depreciation expense: $80,000
Increase in accounts receivable: ($20,000)
Decrease in inventory: $30,000
Increase in accounts payable: $20,000
Net cash provided by operating activities: $210,000 + $80,000 - $20,000 + $30,000 + $20,000 = $320,000
Therefore, the correct answer is C, $169,000, which is the net cash provided by operating activities as shown on the statement of cash flows for Austin Corporation.

The Following Data Relate to Austin Corporation for Last Year