Question

MC Qu. 166 Scranton, Inc. reports net income... Scranton, Inc. reports net income of $247,000 for the year ended December 31. It also reports $95,100 depreciation expense and a $5,850 gain on the sale of equipment. Its comparative balance sheet reveals a $38,900 decrease in accounts receivable, a $17,450 increase in accounts payable, and a $13,650 decrease in wages payable. Calculate the cash provided (used) in operating activities using the indirect method.

Answer 1

Answer:

$378,950

Explanation:

Cash provided (used) in operating activities using the indirect method:

=  Total net income + Depreciation - Gain on sale of equipment + Decrease in accounts receivables + Increase in accounts payable - Decrease in wages payable

= $247,000 + $95,100 - $5,850 + $38,900 + $17,450 - $13,650

= $378,950