Speedy Supermarket reported net income of $24,000 in 2014. No dividends were declared nor paid during the year. Changes in the selected accounts during the year are: $\begin{array} { l c }
& \text { Increase/(Decrease) } \
\text { Accounts receivable } & \$ 16,200 \
\text { Inventory } & 11,800 \
\text { Prepaid expenses } & (4,000) \
\text { Accounts payable } & 27,300 \
\text { Salaries payable } & (3,000)
\end{array}$ How much is the company's net cash provided by operating activities?

Question

Speedy Supermarket reported net income of $24,000 in 2014. No dividends were declared nor paid during the year. Changes in the selected accounts during the year are: $\begin{array} { l c } 
& \text { Increase/(Decrease) } \
\text { Accounts receivable } & \$ 16,200 \
\text { Inventory } & 11,800 \
\text { Prepaid expenses } & (4,000) \
\text { Accounts payable } & 27,300 \
\text { Salaries payable } & (3,000)
\end{array}$ How much is the company's net cash provided by operating activities?

Quizplus · Accepted Answer

Net income + Depreciation and amortization + Increase in current liabilities - Increase in current assets = Net cash provided by operating activities$24,000 + $0 + $30,300 - $28,000 = $24,300

Speedy Supermarket Reported Net Income of $24,000 in 2014 How Much Is the Company's Net Cash Provided by Operating