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The comparative balance sheets for Sheffield Corp. show these changes in noncash current asset accounts: accounts receivable decrease $81,100, prepaid expenses increase $24,700, and inventories increase $33,400. Compute net cash provided by operating activities using the indirect method assuming that net income is $300,170.

Respuesta :

Answer:

$323,170

Explanation:

The preparation of the Cash Flows from Operating Activities Indirect Method is presented below:

Cash flow from Operating activities

Net income $300,170

Add: Decrease in accounts receivable $81,100

Less: Increase in inventory -$33,400

Less: Increase in prepaid expenses -$24,700

Net Cash flow from Operating activities        $323,170