Peninsula Company reported net income of $290,000 for the year.During the year, accounts receivable increased by $21,000, accounts payable decreased by $9,000 and depreciation expense of $45,000 was recorded.Net cash provided by operating activities for the year is
A)$305,000.
B)$275,000.
C)$257,000.
D)$290,000.

Question

Quizplus · Accepted Answer

Net income + Depreciation expense + Decrease in accounts payable - Increase in accounts receivable = Net cash provided by operating activities$290,000 + $45,000 - $9,000 - $21,000 = $305,000

Peninsula Company Reported Net Income of $290,000 for the Year