A Company's Income Statement Showed the Following: Net Income,$124,000; Depreciation

question 70

Multiple Choice

A company's income statement showed the following: net income,$124,000; depreciation expense,$30,000; and gain on sale of plant assets,$14,000.An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities:
Accounts receivable decreased $9,400; merchandise inventory increased $18,000; prepaid expenses decreased $6,200; accounts payable increased $3,400.Calculate the net cash provided or used by operating activities.

• A)$139,000.
• B)$141,000.
• C)$145,800.
• D)$155,000.
• E)$167,000.

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Definitions:

Lowest Terms

Refers to a fraction that is simplified to its smallest possible numerator and denominator without changing its value.

Fractions

A numerical quantity that is not a whole number, representing a part of a whole.

Mixed Numbers

Numbers made up of a whole number and a fraction, indicating a quantity that falls between two consecutive integers.

Lowest Terms

refers to the simplest form of a fraction, where the numerator and denominator are as small as possible and share no common divisors other than 1.