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What is the amount of cash prvded by operating activity

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Reference no: EM132566402

For the year-ending December 31, 2020, Home Manufacturing reported Net Income in the amount of $ 5,00000. Included in this amount was a Pre-Tax Gain of $ 1,500,000, related to the sale of equipment. At thtime of sale. the eauipment sold hada book value of$ 2 500 000. andit was sold forS 4 000000. Since Home Manufacturina pavs taxes ata rate of 20%. the after-tax aain was $ 1,200,000.

In adition to the above, for the year ending December 31, 2020, Home Manufactring reported deprecition in the amount of$ 60,00000 During the year, Accounts Receivable increased by $ 10,000, Inventory decreased by $300 000, and accounts payable increased by$500,000

Question 1: Home Manfactring uses the Iniret Method when pepaig their Statement of Cash Flows. Based on the infomation prvded above, what is the amount of "Cash Prvded by Operating Activity that Home Manufacturing should port for their fiscal-year ending December 31, 2020?

Option A. 4,800,000

Option B. 5,300,000

Option C. 5,600,000

Option D. 7,800,000

Reference no: EM132566402

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