The Robinson Company reported net income of $90, 000 in 2010.Additional information follows: $\begin{array}{ll}
\text { Depreciation expense } & \$ 18,000 \
\text { Loss on sale of equipment } & 10,000 \
\text { Gain on sale of land } & 17,000
\end{array}$
Given just this information, what was the Robinson Company's net cash provided by operating activities in 2010?
A)$ 79, 000
B)$100, 000
C)$101, 000
D)$115, 000

Question

The Robinson Company reported net income of $90, 000 in 2010.Additional information follows: $\begin{array}{ll}
\text { Depreciation expense } & \$ 18,000 \
\text { Loss on sale of equipment } & 10,000 \
\text { Gain on sale of land } & 17,000
\end{array}$
 Given just this information, what was the Robinson Company's net cash provided by operating activities in 2010?
A)$ 79, 000
B)$100, 000
C)$101, 000
D)$115, 000

Quizplus · Accepted Answer

To calculate net cash provided by operating activities, start with net income and adjust for non-cash expenses and gains/losses. Start with $90,000 net income, add back $18,000 depreciation (a non-cash expense), add $10,000 loss on sale of equipment (a non-cash loss), and subtract $17,000 gain on sale of land (a non-cash gain). This results in $90,000 + $18,000 + $10,000 - $17,000 = $101,000.

The Robinson Company Reported Net Income of $90, 000 in 2010.Additional