Harlow Industries reported net income of $56,000 for the current year.During the year,Inventory decreased by $19,600,Accounts Payable decreased by $22,400,Depreciation Expense was $28,000,and Accounts Receivable increased by $18,200.If the indirect method is used,what is the net cash provided by operating activities?
A)$29,400
B)$63,000
C)$107,800
D)$144,200

Question

Quizplus · Accepted Answer

Using the indirect method, we start with the net income of $56,000. Then, we adjust for non-cash and working capital changes:- Add back Depreciation Expense: $28,000 (since it's a non-cash expense)- Decrease in Inventory is an increase in cash: $19,600- Decrease in Accounts Payable is a decrease in cash: -$22,400- Increase in Accounts Receivable is a decrease in cash: -$18,200So, the calculation is: $56,000 + $28,000 + $19,600 - $22,400 - $18,200 = $63,000.

Harlow Industries Reported Net Income of $56,000 for the Current