Plexis Company reported net income of $148000. For 2016 depreciation was $45000 and the company reported a gain on sale of investments of $12000. Accounts receivable increased $25000 and accounts payable decreased $23000.
Instructions
Compute net cash provided by operating activities using the indirect method.

Question

Mykaela Taketa · Accepted Answer

Final Answer :   Net income $ 148 , 000  Adjustments to reconcile net income to net cash  provided by operating activities  Depreciation expense  $ 45 , 000  Gain on sale of investments  ( 12 , 000 )  Increase in accounts receivable  ( 25 , 000 )  Decrease in accounts payable  ( 23 , 000 ) ( 15 , 000 )  Net cash provided by operating activities  $ 133.000 \begin{array}{lc}	ext { Net income} & \$148,000\	ext { Adjustments to reconcile net income to net cash}\	ext {  provided by operating activities}\	ext { Depreciation expense }  &  \$ 45,000 \	ext { Gain on sale of investments }  &  (12,000) \	ext { Increase in accounts receivable }  &  (25,000) \	ext { Decrease in accounts payable }  &  (23,000) & (15,000)\	ext { Net cash provided by operating activities } & & \$133.000\end{array}  Net income  Adjustments to reconcile net income to net cash  provided by operating activities  Depreciation expense   Gain on sale of investments   Increase in accounts receivable   Decrease in accounts payable   Net cash provided by operating activities  ​ $148 , 000 $45 , 000 ( 12 , 000 ) ( 25 , 000 ) ( 23 , 000 ) ​ ( 15 , 000 ) $133.000 ​

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