This exercise will enable you to practice reconciling net income with net cash provided by operating activities.

The following data relate to the L. Heckenmueller Co. for 2014.

Net income

$75.000

Increase in accounts receivable

7,000

Decrease in prepaid expenses

3,200

Increase in accounts payable

5.000

Decrease in taxes payable

900

Gain on sale of investment

1,700

Depreciation

3,500

Loss on disposal of plant assets

600

Instructions

Compute the net cash provided by operating activities for 2014.