question 16 rubble company reported net income of $70,000 for the year. during the year, accounts receivable…

question 16 rubble company reported net income of $70,000 for the year. during the year, accounts receivable increased by $6,000, accounts payable decreased by $5,000 and depreciation expense of $8,000 was recorded. using the indirect method, net cash provided by operating activities for the year is o $67,000. o $89,000. o $70,000. o $63,000.

question 16 rubble company reported net income of $70,000 for the year. during the year, accounts receivable increased by $6,000, accounts payable decreased by $5,000 and depreciation expense of $8,000 was recorded. using the indirect method, net cash provided by operating activities for the year is o $67,000. o $89,000. o $70,000. o $63,000.

Answer

Explanation:

Step1: Recall the formula for net cash provided by operating activities (indirect method).

Net cash provided by operating activities = Net income + Depreciation - Increase in accounts receivable - Decrease in accounts payable

Step2: Substitute the given values.

Net income = $70,000$, Depreciation = $8,000$, Increase in accounts receivable = $6,000$, Decrease in accounts payable = $5,000$ Net cash provided by operating activities = $70000 + 8000-6000 - 5000$

Step3: Calculate the result.

$70000+8000 - 6000-5000=67000$

Answer:

$67,000$