Given the following information related to net changes in working capital accounts for the Player Company: Increase Decrease
Cash $15,000
Trade accounts receivable (net) 8,400
Inventories $16,200
Salaries payable (operating) 6,000
Trade accounts payable 11,000

Cash Provided by Operating Activities is $100,000. The company also indicated that depreciation expense for the year was $14,200. Net Income is:

a. $73,000
b. $87,200
c. $118,200
d. $103,000
e. $103,200

a. $73,000

Explanation:

Particulars                                                                Amount

Cash Provided by Operating Activities                $100,000

- Depreciation Expenses                                       ($14,200)

+ Increase in Trade accounts receivable (net)     $8,400

- Decrease in Inventories                                      ($16,200)

+ Decrease in Salaries payable (Operating)         $6,000

- Increase in Trade accounts payable                   ($11,000)

Net Income                                                              $73,000

answer; i believe the correct answer is (sales promotion;