What is the net cash provided by operating activities

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Reference no: EM132775150

Piccolo Company provided the following information for the year ended December 31, 2015:

Increase in long-term debt                            600,000
Purchase of treasury shares                         500,000
Depreciation and amortization                       1,900,000
Gain on sale of equipment                             100,000
Proceeds from issuance of ordinary shares       2,000,000
Purchase of equipment for cash                     4,000,000
Proceeds from sale of equipment                      400,000
Payment of dividends                                   700,000
Net income                                              4,500,000

Increase (decrease) in working capital accounts:

Accounts receivable                           1,500,000
Inventory                                           (800,000)
Trade notes payable                           1,000,000
Accounts payable                             1,200,000
Income tax payable                             (300,000)
Cash balance, January 1, 2015                  1,500,000

Problem 1: What is the net cash provided by operating activities?

A. 7,700,000

B. 7,600,000

C. 7,500,000

D. 6,800,000

Reference no: EM132775150

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