In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available: $$\begin{array} { l | r }
\text { Net income for the year was } & \$ 52,000 \
\hline \text { Accounts payable increased by } & 18,000 \
\hline \text { Accounts receivable decreased by } & 25,000 \
\hline \text { Inventories increased by } & 5,000 \
\hline \text { Depreciation expense was } & 30,000
\end{array}$$ Net cash provided by operating activities was:
A)$60,000.
B)$70,000.
C)$130,000.
D)$80,000.
E)$120,000.

Question

In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available: $$\begin{array} { l | r } 
\text { Net income for the year was } & \$ 52,000 \
\hline \text { Accounts payable increased by } & 18,000 \
\hline \text { Accounts receivable decreased by } & 25,000 \
\hline \text { Inventories increased by } & 5,000 \
\hline \text { Depreciation expense was } & 30,000
\end{array}$$ Net cash provided by operating activities was:
A)$60,000.
B)$70,000.
C)$130,000.
D)$80,000.
E)$120,000.

Quizplus · Accepted Answer

The Answer of In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available: $$\begin{array} { l | r } 
\text { Net income for the year was } & \$ 52,000 \
\hline \text { Accounts payable increased by } & 18,000 \
\hline \text { Accounts receivable decreased by } & 25,000 \
\hline \text { Inventories increased by } & 5,000 \
\hline \text { Depreciation expense was } & 30,000
\end{array}$$ Net cash provided by operating activities was:
A)$60,000.
B)$70,000.
C)$130,000.
D)$80,000.
E)$120,000.

In Preparing a Company's Statement of Cash Flows for the Most