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NINJA Question –
Lino Co.’s worksheet for the preparation of its statement of cash flows included the following:
December 31 January 1
Accounts receivable $29,000 $23,000
Allowance for uncollectible accounts 1,000 800
Prepaid rent expense 8,200 12,400
Accounts payable 22,400 25,400
Lino’s net income is $150,000. What amount should Lino include as net cash provided by operating activities in the statement of cash flows?
Net income $150,000
Increase in accounts receivable ($23,000 – $29,000) (6,000)
Increase in allowance for uncollectible accounts
($800 – $1,000) 200
Decrease in prepaid rent expense ($12,400 – $8,200) 4,200
Increase in accounts payable ($25,400 – $22,400) 3,000
Cash provided by operating activities $151,400
Jeff, do you know why this accounts for the accounts payable as an increase and not a decrease?
A - 75
B - 78 God is good.
F - 77 Answered prayers.
R - 84! Done!!Paperwork sent - waiting for license!!
Still on a cloud and in shock. Through God, all things will happen.
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