RM Company, a manufacturer, has provided the following information pertaining to its recent year of operation: Net income $390,000
Accounts payable increased $33,000
Prepaid rent decreased $14,500
Depreciation expense was $44,000
Accounts receivable increased $43,000
Gain on sale of a building was $15,500
Wages payable decreased $30,000
Unearned revenue increased $53,000
Using the indirect method, how much was RM's net cash provided by operating activities?
a. $259,000.
b. $327,000.
c. $347,000.
d. $358,000.

RM Company

Using the indirect method, RM's net cash provided by operating activities is:

= $446,000.

Explanation:

a) Data and Calculations:

Net income $390,000

Accounts payable increased $33,000

Prepaid rent decreased $14,500

Depreciation expense was $44,000

Accounts receivable increased $43,000

Gain on sale of a building was $15,500

Wages payable decreased $30,000

Unearned revenue increased $53,000

Operating Activities:

Net income                                 $390,000

Adjustment with non-cash items:

Depreciation expense was            44,000

Gain on sale of a building was      (15,500)

Working capital changes:

Accounts payable increased         33,000

Prepaid rent decreased                 14,500

Unearned revenue increased      53,000

Accounts receivable increased  (43,000)

Wages payable decreased         (30,000)

Net cash provided by operating

 activities                                $446,000

answer; microeconomics;