The Following Information Should Be Used to According to the Provisions

question 58

Multiple Choice

The following information should be used to according to the provisions of GAAP (Statement of Cash flows) and using the following data. $$\begin{array} { l r } \text { Net income } & \$ 50,000 \\\text { Provision for bad debts } & 2,000 \\\text { Increase in inventory } & 1,000 \\\text { Increase in accounts payable } & 2,000 \\\text { Purchase of new equipment } & 15,000 \\\text { Sale of equipment for } \$ 10,000 \text { gain } & 20,000 \\\text { Depreciation expense } & 5,000 \\\text { Repurchase of common stock } & 10,000 \\\text { Payment of dividend } & 4,000 \\\text { Interest payment } & 3,000\end{array}$$
-What is net cash flow from operations?

• A)$58,000
• B)$55,000
• C)$54,000
• D)$48,000

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Definitions:

Innovating Business Strategies

Refers to the creation and implementation of new and unique strategies in business operations aimed at achieving competitive advantage and meeting changing market demands.

Hands-On

The term 'hands-on' refers to actively engaging in tasks rather than observing or directing, emphasizing practical experience and involvement.

Humility

A personal quality of modesty and respect for others, often seen as a virtue in leadership and personal relationships.

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The sum of the output or results achieved by multiple individuals working together in a team or group setting.