Chapter 13, Problem 13.10E

Compute net cash provided by operating activities—direct method.

(LO 4), AP

Macgregor Company completed its first year of operations on December 31.2017. Its initial income statement showed that Macgregor had revenues of $192,000 and operating expenses of $78,000. Accounts receivable and accounts payable at year-end were $60,000 and $23,000, respectively. Assume that accounts payable related to operating expenses. Ignore income taxes.

Instructions

Compute net cash provided by operating activities using the direct method.