Question

ABC Corporation reports the following information:

Net income $380,000
Depreciation 70,000
Decrease in accounts receivable 30,000.

ABC should report cash provided by operating activities of :

a. $280,000.
b. $340,000.
c. $420,000.
d. $480,000.

Answer 1

$480,000

Step-by-step explanation:

Data provided as per the question below:-

Net income = $380,000

Depreciation = $70,000

Decrease in accounts receivable = $30,000

The computation of cash provided by operating activities is shown below:-

= Net income + Depreciation + Decrease in accounts receivable

= $380,000 + $70,000 + $30,000

= $480,000

Therefore we applied the above formula.