Guenther Corporation reported profit of $50,000 for the year.During the year, accounts receivable increased by $8,000, accounts payable decreased by $4,000 and depreciation expense of $6,000 was recorded.Using the indirect method, cash provided by operating activities for the year is

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The cash provided by operating activities is calculated by adjusting the net profit for changes in working capital and non-cash expenses. Start with the profit of $50,000, add back the non-cash depreciation expense of $6,000, subtract the increase in accounts receivable of $8,000, and subtract the decrease in accounts payable of $4,000. This results in $44,000.

Guenther Corporation Reported Profit of $50,000 for the Year