Lil Bean Co.'s income statement showed the following for the year ended December 31,2015: net income,$86,000; depreciation expense,$32,000; and gain on sale of plant assets,$7,000.An examination of the company's current assets and current liabilities showed that the following changes occurred because of operating activities: accounts receivable decreased $4,500; merchandise inventory increased $6,200; prepaid expenses increased $4,500; accounts payable decreased $3,000.Using the indirect method,calculate the net cash provided (or used)by operating activities.

Question

Quizplus · Accepted Answer

The Answer of Lil Bean Co.'s income statement showed the following for the year ended December 31,2015: net income,$86,000; depreciation expense,$32,000; and gain on sale of plant assets,$7,000.An examination of the company's current assets and current liabilities showed that the following changes occurred because of operating activities: accounts receivable decreased $4,500; merchandise inventory increased $6,200; prepaid expenses increased $4,500; accounts payable decreased $3,000.Using the indirect method,calculate the net cash provided (or used)by operating activities.