Question

Ayayai Corp. reported net income of $87300 for the year. During the year, accounts receivable increased by $5820, accounts payable decreased by $3880 and depreciation expense of $9700 was recorded. Net cash provided by operating activities for the year is

Answer 1

Answer: $87,300

Explanation:

Net cash provided by operating activities are those that are generated from the operations of the company.

The calculation is:

= Net income + Depreciation - Accounts receivable increase - accounts receivable decrease

= 87,300 + 9,700 - 5,820 - 3,880

= $87,300