Prejean Corporation's most recent comparative balance sheet and income statement appear below: Cash dividends were $32.The company did not retire or sell any property,plant,and equipment during the year.The net cash provided by (used in)operating activities for the year was:
A)$45
B)$87
C)$177
D)$189

Question

Prejean Corporation's most recent comparative balance sheet and income statement appear below:   Cash dividends were $32.The company did not retire or sell any property,plant,and equipment during the year.The net cash provided by (used in)operating activities for the year was:
A)$45 
B)$87 
C)$177 
D)$189

Quizplus · Accepted Answer

To calculate the net cash provided by operating activities, we need to start with net income and adjust for non-cash items and changes in working capital.

Starting with net income of $205, we add back depreciation of $117 and subtract the increase in accounts receivable of $33, the decrease in accounts payable of $15, and the increase in prepaid expenses of $47. This gives us net cash provided by operating activities of $177. We then subtract the cash dividends of $32 to get a final answer of $145.

Therefore, the best choice is C) $177.

Prejean Corporation's Most Recent Comparative Balance Sheet and Income Statement