Problem:
Hilton Company reported net income of $30,000 for the year. During the year, accounts receivable increased by $7,000, accounts payable decreased by $3,000 and depreciation expense of $5,000 was recorded.
Required:
Question: Using the indirect method, net cash provided by operating activities for the year is:
- $25,000
- $45,000
- $29,000
- $30,000
Note: Provide support for your rationale.