Compute net cash provided by operating activities


Problem

Cash flow statement

Continental LLC, USA uses indirect method for preparing its statement of cash flows. It reported a net income of $ 200,000 for the year 2021. Cash at the beginning of year was $ 350,000

During 2021 the working capital accounts were changed as follows:

1. Increase in accounts receivable: $ 44,000
2. Increase in accounts payable: $ 32,200
3. Increase in inventory: $ 29,600
4. Purchase of land: $ 300,000
5. Sale of machinery: $ 50,000
6. Issuance of ordinary shares: $ 200,000
7. Payment of dividend: $ 75,000
8. The depreciation expense was $ 68,000 for year 2021.

Task

Compute net cash provided (used) by operating activities, investing and financing activities using indirect method.

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Financial Accounting: Compute net cash provided by operating activities
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