Water Girl Corp.'s 2013 income statement follows:
The company also experienced the following during 2013:
$$\begin{array} { | l | r | }
\hline \text { Increase in accounts receivable } & { \$4 , 0 0 0 } \
\hline \begin{array} { l }
\text { Increase in accounts payable (all accounts payable trarsactions are for } \
\text { inventory) }
\end{array} & 16,000 \
\hline \text { Increase in income taxes payable } & { 3 0 0 } \
\hline \text { Decrease in prepaid expenses } & 10,000 \
\hline \text { Decrease in merchardise inventory } & 14,000 \
\hline \text { Decrease in long-term notes payable } & { 2 0 , 0 0 0 } \
\hline
\end{array}$$ Required: Calculate the company's net cash provided or used by operating activities using the direct method.

Question

Water Girl Corp.'s 2013 income statement follows:
  The company also experienced the following during 2013:
 $$\begin{array} { | l | r | } 
\hline \text { Increase in accounts receivable } & { \$4 , 0 0 0 } \
\hline \begin{array} { l } 
\text { Increase in accounts payable (all accounts payable trarsactions are for } \
\text { inventory) }
\end{array} & 16,000 \
\hline \text { Increase in income taxes payable } & { 3 0 0 } \
\hline \text { Decrease in prepaid expenses } & 10,000 \
\hline \text { Decrease in merchardise inventory } & 14,000 \
\hline \text { Decrease in long-term notes payable } & { 2 0 , 0 0 0 } \
\hline
\end{array}$$ Required: Calculate the company's net cash provided or used by operating activities using the direct method.

Quizplus · Accepted Answer

The Answer of Water Girl Corp.'s 2013 income statement follows:
  The company also experienced the following during 2013:
 $$\begin{array} { | l | r | } 
\hline \text { Increase in accounts receivable } & { \$4 , 0 0 0 } \
\hline \begin{array} { l } 
\text { Increase in accounts payable (all accounts payable trarsactions are for } \
\text { inventory) }
\end{array} & 16,000 \
\hline \text { Increase in income taxes payable } & { 3 0 0 } \
\hline \text { Decrease in prepaid expenses } & 10,000 \
\hline \text { Decrease in merchardise inventory } & 14,000 \
\hline \text { Decrease in long-term notes payable } & { 2 0 , 0 0 0 } \
\hline
\end{array}$$ Required: Calculate the company's net cash provided or used by operating activities using the direct method.

Water Girl Corp Required: Calculate the Company's Net Cash Provided or Used by Company