Question

Coronado, Inc. reported net income of $2.95 million in 2022. Depreciation for the year was $188,800, accounts receivable decreased $413,000, and accounts payable decreased $330,400. Compute net cash provided by operating activities using the indirect method

Answer 1

Net cash provided by operating activities $3,221,400

Step-by-step explanation:

The computation of the net cash provided by operating activities using the indirect method is given below

cash provided by operating activities

Net income $2,950,000

Add: depreciation $188,800

Add: decrease in account receivable $413,000

Less: decrease in account payable -$330,400

Net cash provided by operating activities $3,221,400