Peninsula Company reported net income of $260,000 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) $275,000.
B) $245,000.
C) $227,000.
D) $260,000.

Question

Quizplus · Accepted Answer

Net income + depreciation expense + decrease in accounts payable - increase in accounts receivable = net cash provided by operating activities$260,000 + $45,000 + $9,000 - $21,000 = $275,000

Peninsula Company Reported Net Income of $260,000 for the Year