The Following Information Should Be Used According to the Provisions

question 66

Multiple Choice

The following information should be used according to the provisions of GAAP (Statement of Cash flows) and using the following data.
$\begin{array}{lr}\text { Net income } & \$ 80,000 \\\text { Amortization of goodwill } & 2,000 \\\text { Decrease in accounts receivable } & 2,000 \\\text { Increase in inventory } & 3,000 \\\text { Purchase of marketable securities } & 13,000 \\\text { Sale of land for } \$ 10,000 \text { gain } & 11,000 \\\text { Depreciation expense } & 4,000 \\\text { Repayment of debt } & 8,000 \\\text { Payment of dividend } & 3,000 \\\text { Interest payment } & 2,000\end{array}$


-What is net cash flow from operations?

• A)$74,000
• B)$75,000
• C)$83,000
• D)$85,000

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Definitions:

Dividend Policy

A company's approach to distributing profits back to its shareholders through dividends.

Capital Gains

The increase in value of an asset or investment over its purchase price, which becomes realized upon the sale of the asset.

Ex-dividend Date

The date on which stocks are traded without the right to receive the next dividend payment, determining who will receive the dividend.

Dividend Payment

A portion of a company's earnings distributed to shareholders, usually on a regular basis.