Anew Health Care Company reports net income of $220,000 and Depreciation Expense of $16,000 for the year ending December 31,2019.No long-term assets were sold or exchanged during 2019.They also have the following data available: Using the indirect method,what is the net cash provided by operating activities for the year ending December 31,2019?
A)$72,000
B)$104,000
C)$132,000
D)$208,000

Question

Anew Health Care Company reports net income of $220,000 and Depreciation Expense of $16,000 for the year ending December 31,2019.No long-term assets were sold or exchanged during 2019.They also have the following data available:  Using the indirect method,what is the net cash provided by operating activities for the year ending December 31,2019?
A)$72,000 
B)$104,000 
C)$132,000 
D)$208,000

Quizplus · Accepted Answer

Net income $220,000 + Depreciation Expense $16,000 - Increase Accounts Receivable $63,000 - Increase Inventory $28,000 + Increase Accounts Payable $9000 - Decrease Salaries Payable $50,000 = $104,000

Anew Health Care Company Reports Net Income of $220,000 and Depreciation