Problem - Hogan Company, had the following account balances for 2016:
|
|
Dec. 31
|
Jan. 1
|
|
Accounts receivable
|
$44,000
|
$35,000
|
|
Accounts payable
|
60,000
|
55,000
|
|
Prepaid insurances
|
15,000
|
10,000
|
Hogan reported net income of $300,000 for 2016. Assuming no other changes in current account balances, what is the amount of net cash provided by operating activities for 2016 reported in the statement of cash flows?
a. $291,000.
b. $290,000.
c. $281,000.
d. $301,000.