In Preparing a Company's Statement of Cash Flows for the Most

question 16

Multiple Choice

In preparing a company's statement of cash flows for the most recent year using the indirect method,the following information is available:
$$\begin{array} { | l | r | } \hline \text { Net income for the year was } & \$ 52,000 \\\hline \text { Accounts payable decreased by } & \$ 18,000 \\\hline \text { Accounts receivable increased by } & \$ 25,000 \\\hline \text { Inventories increased by } & \$ 5,000 \\\hline \text { Cash dividends paid were } & \$ 14,000 \\\hline \text { Depreciation expense was } & \$ 20,000 \\\hline\end{array}$$
Net cash provided by operating activities was:

• A) $120,000.
• B) $71,000.
• C) $70,000.
• D) $24,000.
• E) $110,000

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