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Zook Incorporated, Had Net Income for 2015 of $4,500,000 What Should Be the Net Cash Provided by Operating Activities

Question 115

Multiple Choice

Zook Incorporated, had net income for 2015 of $4,500,000. Additional information is as follows:  Amortization of patents 45,000 Depreciation on plant assets 1,650,000 Long-term debt:  Bond premium amortization 65,000 Interest paid 900,000 Provision for doubtful accounts:  Current receivables 80,000 Long-term nontrade receivables 30,000\begin{array}{lr}\text { Amortization of patents } & 45,000 \\\text { Depreciation on plant assets } & 1,650,000\\\text { Long-term debt: }\\\text { Bond premium amortization } & 65,000 \\\text { Interest paid } & 900,000\\\text { Provision for doubtful accounts: }\\\text { Current receivables } & 80,000 \\\text { Long-term nontrade receivables } & 30,000\end{array} What should be the net cash provided by operating activities in the statement of cash flows for the year ended December 31, 2015, based solely on the above information?


A) $6,320,000.
B) $6,370,000.
C) $6,240,000.
D) $6,340,000.

Correct Answer:

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