Use the Indirect Method to Calculate the Net Cash Provided

question 92

Multiple Choice

Use the indirect method to calculate the net cash provided (or used) by operating activities based on the following information: $\begin{array}{|l|r|}\hline \text { Profit } & \$ 60,000 \\\hline \text { Depreciation expense } & 7,200 \\\hline \text { Gain on sale of land } & 14,000 \\\hline \text { Decrease in inventory } & 3,500 \\\hline \text { Increase in accounts payable } & 5,500 \\\hline \text { Cash from land sale } & 9,200 \\\hline\end{array}$

• A)$62,200
• B)$14,000
• C)$21,200
• D)$14,700
• E)$9,200

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