Oriole Company reported net income of $62000 for the year. During the year, accounts receivable decreased by $7600, accounts payable increased by $4000 and depreciation expense of $5100 was recorded. Net cash provided by operating activities for the year is?
Operating Cash Flow:
The net cash provided by operating activities is calculated in the first part of the cash flow statement and it represents the cash that was generated from trading by the company in the reporting period.
Answer and Explanation:
|Add (deduct) noncash effects on operating income|
|Decrease in accounts receivable||$7,600||A decrease should be added because it implies that cash was collected from customers|
|Increase in accounts payable||$4,000||An increase will be added as it implies that cash was generated from supplier credit|
|Net cash provided by operating activities||$78,700|
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from Finance 101: Principles of FinanceChapter 10 / Lesson 4