A Company Had Net Income of $990,000

question 106

Multiple Choice

A company had net income of $990,000. Depreciation expense is $110,000. During the year, accounts receivable and inventory increased $60,000 and $160,000, respectively. Prepaid expenses and accounts payable decreased $8,000 and $16,000, respectively. There was also a loss on the sale of equipment of $12,000. How much cash was provided by operating activities?

• A) $860,000.
• B) $884,000.
• C) $1,180,000.
• D) $1,228,000.