The profit reported on the income statement for the current year was $200,000. Depreciation recorded on plant assets was $38,000. Accounts receivable increased and inventories decreased by $2,000 and $8,000, respectively. Prepaid expenses decreased and Accounts payable increased by $1,000 and $11,000, respectively. The amount of cash provided by operating activities was:
A) $180,000.
B) $218,000.
C) $256,000.
D) $238,000.

Question

Quizplus · Accepted Answer

Net cash from operating activities: $200,000 + 38,000 - 2,000 + 8,000 + 1,000 + 11,000 = $256,000.

The Profit Reported on the Income Statement for the Current