Compute net cash provided by operating activities

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Questions -

Q1) Volutia Corporation's comparative financial statements included the following amounts for the current year:

Depreciation expense $102,000

Loss on sale of fixed assets 38,000

Decrease in fixed assets 155,000

Increase in accounts receivable 37,000

Decrease in accounts payable 42,000

Decrease in inventory 71,000

Increase in taxes payable 19,000

Net income 72,000

Required - Compute net cash provided by operating activities using the indirect method.

A) $223,000

B) $22,000

C) $185,000

D) $68,000

Q2) Ralirali Corporation's financial statements included the following amounts for the current year:

Issued new shares of preferred stock $98,000

Loaned cash to key supplier 24,000

Bought new delivery truck for cash 59,000

Proceeds from the sale of used production machinery 29,000

Sold treasury stock 31,000

Required - Based on this information, what is the amount of net cash provided (used) by investing activities?

A) $30,000 net inflow

B) $54,000 net inflow

C) $54,000 net outflow

D) $5,000 net outflow

Reference no: EM132533597

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