ExpertCPA · Question 01 · Area I: Financial Reporting
Vanguard Corp. reported net income of $750,000 for the current year. Relevant balance sheet account changes and supplemental data are as follows:<br/><br/>- Accounts Receivable: Increased by $40,000<br/>- Allowance for Credit Losses: Decreased by $5,000 (Write-offs: $15,000; Bad Debt Expense: $10,000)<br/>- Inventory: Decreased by $25,000<br/>- Accounts Payable: Decreased by $15,000<br/>- Bond Discount: Amortization of $3,000<br/>- Deferred Tax Liability: Increased by $12,000<br/>- Unrealized Gain on AFS Debt Securities (OCI): $8,000<br/><br/>What is the net cash provided by operating activities for the current year?
Vanguard Corp. reported net income of $750,000 for the current year. Relevant balance sheet account changes and supplemental data are as follows:<br/><br/>- Accounts Receivable: Increased by $40,000<br/>- Allowance for Credit Losses: Decreased by $5,000 (Write-offs: $15,000; Bad Debt Expense: $10,000)<br/>- Inventory: Decreased by $25,000<br/>- Accounts Payable: Decreased by $15,000<br/>- Bond Discount: Amortization of $3,000<br/>- Deferred Tax Liability: Increased by $12,000<br/>- Unrealized Gain on AFS Debt Securities (OCI): $8,000<br/><br/>What is the net cash provided by operating activities for the current year?
Answer options:
$720,000
$730,000
$745,000
$753,000
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