Rogers Company reported net income of $35,000 for the year. During the year, accounts receivable increased by $7,000, accounts payable decreased by $3,000, and depreciation expense of $8,000 was recorded. Net cash provided by operating activities under the indirect method for the year is a. $53,000. b. $47,000. c. $33,000. d. $37,000.

Accepted Solution

Answer:correct answer is  option C.Step-by-step explanation:net income of a year =  $35,000 accounts receivable is increased (AR)= $7,000accounts payable decrease(AP) = $3,000depreciation expense = $8,000net cash provided = net income - increase in current asset (AR) - decrease in  current asset (AP) +non cash flownet cash provided =  $35,000 -$7,000-$3,000+ $8,000                                = $33000hence the correct answer is  option C.