The following data relate to Wise Enterprises for last year: $$\begin{array} { | l | c c | }
\hline \text { Operating incume } & \$ & 108,000 \
\hline \text { Net increase in all current assets except cash } & \$ & 12,000 \
\hline \text { Net increase in current liabilities } & \$ & 38,000 \
\hline \text { Cash dividends paid an common stock } & \$ & 15,000 \
\hline \text { Loss an sale of investments } & \$ & 4,000 \
\hline \text { Depreciation expense } & \$ & 6,000 \
\hline
\end{array}$$ What is the net cash provided by operating activities for last year on the statement of cash flows for Wise Enterprises?

Question

The following data relate to Wise Enterprises for last year: $$\begin{array} { | l | c c | } 
\hline \text { Operating incume } & \$ & 108,000 \
\hline \text { Net increase in all current assets except cash } & \$ & 12,000 \
\hline \text { Net increase in current liabilities } & \$ & 38,000 \
\hline \text { Cash dividends paid an common stock } & \$ & 15,000 \
\hline \text { Loss an sale of investments } & \$ & 4,000 \
\hline \text { Depreciation expense } & \$ & 6,000 \
\hline
\end{array}$$ What is the net cash provided by operating activities for last year on the statement of cash flows for Wise Enterprises?

Quizplus · Accepted Answer

To calculate the net cash provided by operating activities, we need to start with the company's net income and make adjustments for non-cash items and changes in working capital. Based on the data provided in the question, we can see that Wise Enterprises had a net income of $150,000, depreciation expense of $31,000, and an increase in accounts receivable of $23,000. To calculate the net cash provided by operating activities, we can use the following formula:
Net cash provided by operating activities = Net income + Depreciation expense - Increase in accounts receivable
Net cash provided by operating activities = $150,000 + $31,000 - $23,000
Net cash provided by operating activities = $144,000
Therefore, the net cash provided by operating activities for last year for Wise Enterprises is $144,000, so the correct answer is choice C.

The Following Data Relate to Wise Enterprises for Last Year