Beta Electronics earned net income of $20,000. Included in the net income was $2,000 of depreciation expense. Current assets increased by $2,000 and current liabilities increased by 1,000. How much cash is provided by operating activities?

Answer:$21,000Step-by-step explanation:Given,Net income = $20,000Depreciation = $2,000Current assets (increase) = $2,000Current liabilities (increase) = $1,000Note: An increase in current assets is a reduction in cash balance while an increase in current liabilities is an increase in cashConsidering the note above,Cash is provided by operating activities = 20000 + 2000 - 2000 + 1000                                                                    = $21,000