question archive Cambrian CollegeACC 1026 Downsview Corp
Cambrian CollegeACC 1026 Downsview Corp
Subject:AccountingPrice:2.87 Bought7
Downsview Corp. reported net income for calendar 2020 of $375,000. Additional information follows:
Depreciation on property, plant and equipment............$187,500
Bad debts expense........................................................68,750
Purchase of equipment..................................................31,250
Interest paid on long-term bonds..................................18,750
Loss on sale of equipment.............................................106,250
Based on the above information, the cash provided by operating activities (indirect method) for calendar 2020 is
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Answer:
Cash provided by operating activities for 2020 : $737,500
Step-by-step explanation
Net income for calendar 2020 of Downsview Corp....: $375,000
Add: Depreciation on property, plant and equipment : $187,500
Add :Bad debts expense.......................................................... : $68,750
Add :Loss on sale of equipment........................................... : $106,250
Cash provided by operating activities for 2020.............: $737,500
