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

question 145

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: $$\begin{array} { l | r } \text { Net income for the year was } & \$ 52,000 \\\hline \text { Accounts payable increased by } & 18,000 \\\hline \text { Accounts receivable decreased by } & 25,000 \\\hline \text { Inventories increased by } & 5,000 \\\hline \text { Depreciation expense was } & 30,000\end{array}$$ Net cash provided by operating activities was:

• A) $60,000.
• B) $70,000.
• C) $130,000.
• D) $80,000.
• E) $120,000.

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Definitions:

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