A company reported profit of $175,000. Depreciation expense is $17,000. During the year Accounts receivable increased and Inventory decreased $12,000 and $30,000, respectively. Prepaid expenses and Accounts payable decreased $1,500 and $5,000, respectively. There was also a loss on the sale of equipment of $6,000. The amount of cash provided by operating activities was:

Question

Quizplus · Accepted Answer

Net cash from operating activities: $175,000 + 17,000 - 12,000 + 30,000 + 1,500 - 5,000 + 6,000 = $212,500.

A Company Reported Profit of $175,000