Cinno Company Reported Net Income of $20,000 for the Year

question 84

Multiple Choice

Cinno Company reported net income of $20,000 for the year ended December 31,2014.During the year,inventories decreased by $7,000,accounts payable decreased by $8,000,depreciation expense was $10,000,and accounts receivable increased by $6,500.Net cash provided by operations in 2014,computed using the indirect method was:

• A)$10,500.
• B)$22,500.
• C)$38,500.
• D)$51,500.

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Definitions:

Ground Tissue

A plant tissue system that makes up the bulk of most plants, involved in photosynthesis, storage, and support; includes parenchyma, collenchyma, and sclerenchyma cells.

Plant Body

The physical structure of a plant, including roots, stems, leaves, and reproductive structures, which function together in growth, reproduction, and survival.

Tuber

A swollen, fleshy, underground stem or root serving as a storage organ for nutrients, exemplified by potatoes.

Underground Stem

A stem of a plant that grows beneath the surface of the soil, such as rhizomes or tubers, storing nutrients and helping in vegetative reproduction.