Toga Corporation reported profit of $50,000 for the year.During the year,trade receivables increased by $8,000,trade payables decreased by $4,000 and depreciation expense of $6,000 was recorded.Net cash provided by operating activities for the year,using the indirect method,is

Question

Quizplus · Accepted Answer

To calculate the net cash provided by operating activities using the indirect method, we start with the net profit and make adjustments for changes in working capital and non-cash expenses:
Net Profit: $50,000
Add: Depreciation Expense: $6,000
Increase in Trade Receivables: ($8,000)
Decrease in Trade Payables: $4,000
Net Cash Provided by Operating Activities: $52,000 - $8,000 + $4,000 = $44,000. Therefore, the correct answer is B.

Toga Corporation Reported Profit of $50,000 for the Year