Carriveau Corporation's most recent balance sheet appears below: Net income for the year was $275. Cash dividends were $51. The company did not sell or retire any property, plant, and equipment during the year. The net cash provided by (used in) operating activities for the year was:

Question

Carriveau Corporation's most recent balance sheet appears below:  Net income for the year was $275. Cash dividends were $51. The company did not sell or retire any property, plant, and equipment during the year. The net cash provided by (used in) operating activities for the year was:

Quizplus · Accepted Answer

To calculate the net cash provided by operating activities (indirect method), we start with net income and make adjustments for non-cash transactions (such as depreciation) and changes in working capital accounts. In this case, we don't have enough information to calculate the changes in working capital accounts, so we have to assume that they were immaterial. Therefore, the net cash provided by operating activities is equal to net income plus depreciation, which is $275 + $7 = $282. We then subtract the cash dividends to arrive at a final answer of $282 - $51 = $231. However, this answer is not one of the choices. The closest choice is C, which is $282. This is the best choice, assuming that the changes in working capital accounts were immaterial.

Carriveau Corporation's Most Recent Balance Sheet Appears Below: Net