Hogan Company had the following account balances for 2009: Hogan reported net income of $300,000 for 2009. Assuming no other changes in current account balances, what is the amount of net cash provided by operating activities for 2009 reported in the statement of cash flows?
A)$291,000.
B)$290,000.
C)$281,000.
D)$301,000.

Question

Quizplus · Accepted Answer

The net cash provided by operating activities is calculated by adjusting net income for changes in working capital. The decrease in accounts receivable ($10,000) is added to net income, resulting in $300,000 + $10,000 = $310,000. The increase in accounts payable ($19,000) is subtracted, resulting in $310,000 - $19,000 = $291,000.

Hogan Company Had the Following Account Balances for 2009: Hogan