Porter Corporation reports the following information: $$\begin{array} { l r }
\text { Net income } & \$ 250,000 \
\text { Depreciation expense } & 70,000 \
\text { Increase in accounts receivable } & 30,000
\end{array}$$ Porter should report cash provided by operating activities of
A)$150,000.
B)$210,000.
C)$290,000.
D)$350,000.

Question

Porter Corporation reports the following information: $$\begin{array} { l r } 
\text { Net income } & \$ 250,000 \
\text { Depreciation expense } & 70,000 \
\text { Increase in accounts receivable } & 30,000
\end{array}$$ Porter should report cash provided by operating activities of
A)$150,000.
B)$210,000.
C)$290,000.
D)$350,000.

Quizplus · Accepted Answer

Cash provided by operating activities is calculated by adjusting net income for non-cash expenses and changes in working capital. Start with net income ($250,000), add back depreciation ($70,000), and subtract the increase in accounts receivable ($30,000): $250,000 + $70,000 - $30,000 = $290,000.

Porter Corporation Reports the Following Information Porter Should Report Cash Provided by Operating Activities of A)$150,000

Porter Corporation Reports the Following Information Porter Should Report Cash Provided by Operating Activities of
A)$150,000