Dingo Boot Company uses the direct method to prepare its statement of cash flows.The company had the following cash flows during 2014:

-See information regarding Dingo Boot Company above.The net cash provided by (used in)operating activities is
A) $60,000.
B) $40,000.
C) $30,000.
D) $(20,000).

Question

Dingo Boot Company uses the direct method to prepare its statement of cash flows.The company had the following cash flows during 2014:
 
-See information regarding Dingo Boot Company above.The net cash provided by (used in)operating activities is
A) $60,000. 
B) $40,000. 
C) $30,000. 
D) $(20,000).

Quizplus · Accepted Answer

Net income + depreciation and amortization - change in working capital = net cash provided by (used in) operating activities$20,000 + $10,000 - $30,000 = $60,000

Dingo Boot Company Uses the Direct Method to Prepare Its