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    Reporting Net Cash on a Statement of Cash Flows

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    Please help with the following problem.

    Twin House Inc, reported net income of $753,000 for the year-ended December 31, 20X8. Twin House's financial statements reflected the following information:
    Depreciation expense $150,000
    Gain on sale of trading securities 6,000
    Goodwill impairment 75,000
    Decrease in accounts receivable 48,000
    Increase in inventory 33,000
    Decrease in trading securities 50,000
    Increase in available-for-sale securities 62,000
    Increase in accounts payable 70,000
    Decrease in taxes payable 15,000
    Dividend paid 200,000
    Dividend received 27,000

    What should Twin House report as net cash provided by operating activities on is 20X8 statement of cash flows?

    © BrainMass Inc. brainmass.com December 15, 2022, 7:48 pm ad1c9bdddf
    https://brainmass.com/business/statement-of-cash-flows/reporting-net-cash-statement-cash-flows-251568

    Solution Preview

    Net cash provided by operating activities
    Net income 753,000
    Add
    Depreciation expense $150,000
    Increase in ...

    Solution Summary

    The following posting involves a problem with financial statements. This response determines the amount of net cash provided by operating activities a company will report on their statement of cash flows.

    $2.49

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