Allen Company's 2019 income statement reported total revenues,$850,000 and total expenses (including $40,000 depreciation)of $720,000.The company's accounting records showed the following: accounts receivable-beginning balance,$50,000 and ending balance,$40,000;accounts payable-beginning balance,$22,000 and ending balance,$28,000.Therefore,based only on this information,how much was the 2019 net cash provided by operating activities?

Question

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Net income is $130,000 ($850,000 - $720,000). Adjust for non-cash depreciation ($40,000) to get $170,000. Accounts receivable decreased by $10,000, increasing cash flow, and accounts payable increased by $6,000, also increasing cash flow. Thus, net cash provided by operating activities is $186,000 ($170,000 + $10,000 + $6,000).

Allen Company's 2019 Income Statement Reported Total Revenues,$850,000 and Total