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Compute net cash provided by operating activities

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Reference no: EM131829966

Problem - Computation of Operating Activities-Direct Method

Situation A: Chenowith Co. reports revenues of $200,000 and operating expenses of $110,000 in its first year of operations, 2010. Accounts receivable and accounts payable at year-end were $71,000 and $39,000, respectively. Assume that the accounts payable related to operating expenses. Ignore income taxes.

Instructions - Using the direct method, compute net cash provided (used) by operating activities and is it provided or used?

Reference no: EM131829966

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