Answer
Calculation of net cash provided by the operating activities under indirect method:
Net cash under operating activities:
Net Income as per Income statement - 200,000 dollars
Add:Decrease in accounts receivables - 80,000 dollars
Less: Increase in prepaid expense - (28,000 dollars)
Less: Increase in inventory - (40,000 dollars)
Net cash provided by operating activates - 212,000 dollars
Work Step by Step
The table indicates about the calculation of net cash provided by the operating activities under indirect method.