During the fiscal year ended June 30,20X9,Global Charities,a voluntary health and welfare organization,received unrestricted cash contributions of $500,000 and temporarily restricted cash contributions of $300,000.All of the temporarily restricted contributions were restricted by the donors for equipment acquisitions.During the year ended June 30,20X9,equipment costing $250,000 was acquired with the restricted contributions.As a result of these two contributions,Global Charities' statement of cash flows,prepared for the year ended June 30,20X9,would report an increase in net cash provided by operating activities of:
A)$500,000.
B)$800,000.
C)$750,000.
D)$550,000.

Question

Quizplus · Accepted Answer

The increase in net cash provided by operating activities would be $500,000, which represents the unrestricted cash contributions. Temporarily restricted contributions are not considered operating activities but rather financing or investing activities, depending on how they are used.

During the Fiscal Year Ended June 30,20X9,Global Charities,a Voluntary Health