Norbury Corporation's net income last year was $25,000. The company did not sell or retire any property, plant, and equipment last year. Changes in selected balance sheet accounts for the year appear below: Increases (Decreases) Asset and Contra-Asset Accounts: Accounts receivable $ 13,500 Inventory $ (3,600) Prepaid expenses $ 9,000 Accumulated depreciation $ 24,000 Liability Accounts: Accounts payable $ 13,000 Accrued liabilities $ (8,100) Income taxes payable $ 2,700 Based solely on this information, the net cash provided by (used in) operating activities under the indirect method on the statement of cash flows would be:

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Zviko Zviko · Answer 1 · 2021-06-03T02:12:19+02:00

Answer:

$37,700

Explanation:

Cashflow from Operating Activities

Net Income $25,000

Adjustments to non - cash flow items :

Add back Depreciation charge $24,000

Adjustments to changes in working capital items :

Increase in Accounts receivable ($13,500)

Decrease in Inventory $3,600

Increase in Prepaid expenses ($9,000)

Increase in Accounts payable $13,000

Decrease in Accrued liabilities ($8,100)

Increase in Income taxes payable $2,700

Net cash provided by operating activities $37,700

thus,

the net cash provided by operating activities under the indirect method on the statement of cash flows would be: $37,700