The Net Income Reported on the Income Statement for the Current

question 218

Multiple Choice

The net income reported on the income statement for the current year was $210,000. Depreciation was $52,000. Accounts receivable and inventories decreased by $5,000 and $15,000, respectively. Prepaid expenses and accounts payable increased, respectively, by $500 and $14,000. How much cash was provided by operating activities?

• A) $277,500.
• B) $287,500.
• C) $295,500.
• D) $228,500.

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