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6 May, 05:16

Nieto Company reported net income of $22,000 for the current year. During the year, Inventory decreased by $7,000, Accounts Payable decreased by $8,000, Accounts Receivable increased by $6,000, and Depreciation Expense was $10,000. If the indirect method is used, what is the net cash provided by operating activities?

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  1. 6 May, 06:37
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    net cash provided by operating activities = $11,000

    Explanation:

    given data

    net income = $22,000

    Inventory decreased = $7,000

    Payable decreased = $8,000

    Accounts Receivable increased = $6,000

    Depreciation Expense = $10,000

    solution

    we get here net cash provided by operating activities that is express as

    net cash provided = Net income - Decrease in Inventory - Decrease in Accounts Payable + Depreciation - Increase in Accounts Receivable ... 1

    put here value and we get

    net cash provided = $22,000 - $7,000 - $8,000 + $10,000 - $6,000

    net cash provided by operating activities = $11,000
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