Information from Zwatsch Company's income statement is as follows: net income $32,000, depreciation expense $5,200; loss on sale of plant assets $1,600; gain on retirement of bonds
$10,000; an increase in accounts receivable of $4,200 and dividend payments of $4,400. The net cash provided by operating activities is:

Question

Quizplus · Accepted Answer

To calculate net cash provided by operating activities, start with net income ($32,000), add back non-cash expenses like depreciation ($5,200), adjust for losses and gains (add loss on sale of assets $1,600, subtract gain on retirement of bonds $10,000), and adjust for changes in working capital (subtract increase in accounts receivable $4,200). Dividends are not included in operating activities. Calculation: $32,000 + $5,200 + $1,600 - $10,000 - $4,200 = $24,600.

Information from Zwatsch Company's Income Statement Is as Follows: Net