In Alona Company net income is $285000. If accounts receivable increased $140000 and accounts payable decreased $40000 net cash provided by operating activities using the indirect method is:
A) $105000.
B) $185000.
C) $385000.
D) $465000.

Question

Quizplus · Accepted Answer

The net cash provided by operating activities is calculated by adjusting the net income for changes in working capital. Starting with the net income of $285,000, subtract the increase in accounts receivable ($140,000) and the decrease in accounts payable ($40,000). This results in $285,000 - $140,000 - $40,000 = $105,000.

In Alona Company Net Income Is $285000