Use the following information and the indirect method to calculate the net cash provided or used by operating activities:
Net income $ 86,800
Depreciation expense 13,500
Gain on sale of land 6,800
Increase in merchandise inventory 3,550
Increase in accounts payable 7,650
A) $97,600.
B) $15,850.
C) $31,400.
D) $16,850.
E) $38,200

Respuesta :

Answer:

A) $97,600

Explanation:

Calculation for the net cash provided or used by operating activities

OPERATING ACTIVITIES

Net Income $86,800

Depreciation Expense 13,500

Gain on Sale of Land (6,800)

Increase in Merchnadize Inventory (3,550)

Increase in Accounts Payable 7,650

Net Cash provided by Operations $97,600

Therefore the net cash provided or used by operating activities will be $97,600