Scranton, Inc

question 233

Multiple Choice

Scranton, Inc. reports net income of $230,000 for the year ended December 31. It also reports $87,700 depreciation expense and a $5,000 gain on the sale of equipment. Its comparative balance sheet reveals a $35,500 decrease in accounts receivable, a $15,750 increase in accounts payable, and a $12,500 decrease in wages payable. Calculate the cash provided (used) in operating activities using the indirect method.

• A) $356,450.
• B) $376,450.
• C) $263,750.
• D) $319,950.
• E) $351,450.