Alcoser Corporation's most recent balance sheet appears below: Net income for the year was $60. Cash dividends were $12. The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows. The net cash provided by (used in) operating activities for the year was:
A)$51
B)$69
C)$9
D)$86

Question

Alcoser Corporation's most recent balance sheet appears below:  Net income for the year was $60. Cash dividends were $12. The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows. The net cash provided by (used in) operating activities for the year was:
A)$51 
B)$69 
C)$9 
D)$86

Quizplus · Accepted Answer

To calculate the net cash provided by operating activities, we need to start with net income ($60), add back any noncash expenses such as depreciation ($8), and adjust for changes in current assets and liabilities. Looking at the balance sheet, we can see that accounts receivable decreased by $10, inventory increased by $6, accounts payable increased by $7, and accrued expenses decreased by $4. Adding these adjustments to net income and depreciation, we get:
$60 + $8 - $10 + $6 - $7 + $4 = $61
However, we also need to subtract any cash dividends paid, which were $12. Therefore, the net cash provided by operating activities was:
$61 - $12 = $49
The only answer choice that is close to this amount is B) $69, which is the correct answer.

Alcoser Corporation's Most Recent Balance Sheet Appears Below: Net