Reference no: EM132560322

Downsview Corp. reported net income for calendar 2020 of $ 375,000. Assume now that Downsview Corp. follows ASPE. Additional information follows:

Depreciation on property, plant and equipment.............. $ 187,500

Bad debts expense.......................................................... 68,750

Purchase of equipment................................................... 31,250

Interest paid on long-term bonds.................................... 18,750

Loss on sale of equipment............................................... 106,250

Question 1: Based on the above information, the cash provided by operating activities (indirect method) for calendar 2020 is

Select one:

Option a. $ 737,500.

Option b. $ 706,250.

Option c. $ 756,250.

Option d. $ 787,500.