Calculate net cash provided by operating activities

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Question - Christchurch Motors Pty Ltd completed its first year of operations on 30 June 2015. Its statement of profit or loss showed that the business had revenues of $158,800 and operating expenses of $84,800 including bad debts expense of $1,100. Accounts receivable and accounts payable at year-end were $45,300 and $35,800, respectively. Assume that accounts payable related to operating expenses. Ignore income tax. The allowance for doubtful debts is $1,100. There has been no direct write-off of accounts receivable.

Required - Calculate net cash provided by operating activities using the direct method.

Reference no: EM132556545

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