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 building was $15,500 ● ● Sale of long-term investment for $9,000 cash • Wages payable decreased $30,000 Unearned revenue increased $53,000 Patent amortization expense was $5,000 Using the indirect method, how much was RM's net cash provided by operating activities? (In other words, what would RM Company show as its net Cash Flow from Operations?)

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 building was $15,500 ● ● Sale of long-term investment for $9,000 cash • Wages payable decreased $30,000 Unearned revenue increased $53,000 Patent amortization expense was $5,000 Using the indirect method, how much was RM's net cash provided by operating activities? (In other words, what would RM Company show as its net Cash Flow from Operations?)

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

ChapterMB: Model-building Problems

Section: Chapter Questions

Problem 14M

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