Calculate the net cash provided by operating activities

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Reference no: EM132315384

Question :

Use the following income statement and information about selected current assets and current liabilities to calculate the net cash provided or used by operating activities using the direct method.

PETERS COMPANY
Income Statement
For Year Ended December 31, 2010

Sales

 

$180,000

Cost of goods sold

 

104.000

Gross profit from sales

 

$ 76,000

Operating expenses:

 

 

Salaries and wages expense

$25,000

 

Depreciation expense

5,000

 

Rent expense

7,200

 

Interest expense

1,900

39,100

Income from operations

 

$36,900

Gain on sale of land

 

2 000

Net income

 

38 900

Selected beginning and ending balances of current asset and current liability accounts, all of which relate to operating activities, are as follows:

 

Balance

 

Dec. 31_ 2010

Dec. 31_ 2009

Accounts receivable

$27,600

$24,000

Merchandise inventory

18,200

20,000

Prepaid rent

550

400

Accounts payable

27,100

31,000

Salaries and wages payable

10,400

9,000

Interest payable

300

250

Reference no: EM132315384

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