Christchurch motors pty ltd completed its first year of


Question - Christchurch Motors Pty Ltd completed its first year of operations on 30 June 2015. Its statement of profit or loss showed that the business had revenues of $164,600 and operating expenses of $79,800 including bad debts expense of $1,100. Accounts receivable and accounts payable at year-end were $40,100 and $32,000, respectively. Assume that accounts payable related to operating expenses. Ignore income tax. The allowance for doubtful debts is $900. There has been no direct write-off of accounts receivable.

Required - Calculate net cash provided by operating activities using the direct method.

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Accounting Basics: Christchurch motors pty ltd completed its first year of
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