Castine Reports Net Income of $305,000 for the Year Ended

question 113

Multiple Choice

Castine reports net income of $305,000 for the year ended December 31,Year 2.It also reports $93,700 depreciation expense and a $10,000 loss on the sale of equipment.Its comparative balance sheet reveals a $40,200 increase in accounts receivable,a $10,200 decrease in prepaid expenses,a $15,200 increase in accounts payable,a $12,500 decrease in wages payable,a $75,000 increase in equipment,and a $100,000 decrease in notes payable.Calculate the increase in cash for Year 2.

• A)$216,400.
• B)$281,400.
• C)$381,400.
• D)$206,400.
• E)$406,400.

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