Neo Corporation reported profit of $ 30,000 for the year. During the year, accounts receivable increased by $ 7,000, accounts payable decreased by $ 3,000 and depreciation expense of $ 5,000 was recorded. Net cash provided by operating activities for the year is

Question

Quizplus · Accepted Answer

Net cash provided by operating activities = Profit + Depreciation - Increase in accounts receivable + Decrease in accounts payable= 30,000 + 5,000 - 7,000 + 3,000= $25,000

Neo Corporation Reported Profit of $ 30,000 for the Year