question archive Alpha Company had the following account balances for 2021: Dec
Alpha Company had the following account balances for 2021: Dec
Subject:AccountingPrice:2.87 Bought7
Alpha Company had the following account balances for 2021: Dec. 31Jan. 1Accounts receivable$40,000 $31,000 Accounts payable 53,000 58,000
Alpha reported net income of $220,000 for 2021. Assuming no other changes in current account balances, what is the amount of net cash provided by operating activities for 2021 reported in the statement of cash flows?
Which is an answer?
- $206,000.
- $234,000.
- $216,000.
- $224,000.
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
Answer:
Net cash = income - ( change in accounts payable + accounts receivable)
accounts payable
=closing balance - opening balance
=58000-53000
=5000 (increase)
accounts receivable
=closing balance - opening balance
=31000-40000
=9000 (decrease)
Net cash
=income - ( change in accounts payable + accounts receivable)
=220,000 - ( 5000 + 9000)
=220,000 -14000
= $ 206,000
The net cash reported in for 2021 statement of cash flows is $206,000
