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Tate Company's 20X2 Income Statement and Changes in Selected Balance

Question 182

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Tate Company's 20X2 income statement and changes in selected balance sheet accounts are given below.Calculate the company's net cash provided or used by operating activities using the direct method.
Tate Company's 20X2 income statement and changes in selected balance sheet accounts are given below.Calculate the company's net cash provided or used by operating activities using the direct method. \begin{array} { | l | r | } \hline \text { Increase in accounts receivable } & \$ 4,000 \\ \hline \text { Increase in accounts payable (all accounts } & \\ \hline \text { payable transactions are for inventory) } & 16,000 \\ \hline \text { Increase in income taxes payable } & 300 \\ \hline \text { Decrease in prepaid expenses } & 10,000 \\ \hline \text { Decrease in merchandise inventory } & 14,000 \\ \hline \text { Decrease in long-term notes payable } & 20,000 \\ \hline \end{array}
 Increase in accounts receivable $4,000 Increase in accounts payable (all accounts  payable transactions are for inventory) 16,000 Increase in income taxes payable 300 Decrease in prepaid expenses 10,000 Decrease in merchandise inventory 14,000 Decrease in long-term notes payable 20,000\begin{array} { | l | r | } \hline \text { Increase in accounts receivable } & \$ 4,000 \\\hline \text { Increase in accounts payable (all accounts } & \\\hline \text { payable transactions are for inventory) } & 16,000 \\\hline \text { Increase in income taxes payable } & 300 \\\hline \text { Decrease in prepaid expenses } & 10,000 \\\hline \text { Decrease in merchandise inventory } & 14,000 \\\hline \text { Decrease in long-term notes payable } & 20,000 \\\hline\end{array}

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