A company's income statement showed the following: net income, $115,000; depreciation expense, $30,500; and gain on sale of plant assets, $4,500. An examination of the company's current assets and current liabilities showed the following changes accounts receivable decreased $9,500; merchandise inventory increased $18,500; prepaid expenses increased $6,300; accounts payable increased $3,500. Calculate the net cash provided or used by operating activities.

$129,200

Explanation:

Cash flow from Operating activities

net income,                                                                 $115,000

adjust for non cash items :

depreciation expense,                                               $30,500

gain on sale of plant assets,                                      ($4,500)

adjust for changes in working capital :

decrease in accounts receivable                               $9,500

increase in merchandise inventory                          ($18,500)

increase in prepaid expenses                                   ($6,300)

increase in accounts payable                                     $3,500

Cash flow from Operating Activities                       $129,200

forbearance of student loan payments. under forbearance, your loan payments are postponed (or reduced) but interest continues to accrue during the period of forbearance. if you don't pay the interest during that period, the interest may be “capitalized,” which means it is added to your principal balance.

answerembargo;