The net income reported on the income statement for the current year was $245,000. Depreciation was $40,000. Account receivable and inventories decreased by $12,000 and $35,000, respectively. Prepaid expenses and accounts payable increased, respectively, by $1,000 and $8,000. How much cash was provided by operating activities

$339,000

Explanation:

Computation of operating activity as is as seen below;

= Net income + Depreciation + Accounts receivable + Inventories decrease - Prepaid expenses + Accounts payable increase

= $245,000 + $40,000 + $12,000 + $35,000 - $1,000 + $8,000

= $339,000

Therefore, the sum of $339,000 was provided as cash for operating activities.

answervulnerability assessment;

since the options are not listed, when you are working on your budget you should also add water, tv, internet, miscellaneous and your 'fun' money for in your budget. when budgeting, you need to allow for fun money, and mis/accidental money so that you stick to the budget and not go crazy because you feel strapped to the budget.