Use the Following Information and the Indirect Method to Calculate

question 57

Multiple Choice

Use the following information and the indirect method to calculate the net cash provided or used by operating activities:

• A)$69,900.
• B)$108,900.
• C)$93,900.
• D)$85,700.
• E)$81,600.

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Definitions:

Net Fixed Assets

The value of a company's property, plant, and equipment minus any accumulated depreciation, representing long-term investments in the business.

Sales

The exchange of goods or services for money; also refers to the function or department within a business that handles this activity.

Times Interest Earned Ratio

A financial metric that measures a company's ability to meet its debt obligations based on its current income.

Operating Income

The profit realized from a business's operations, after deducting operating expenses like wages and cost of goods sold, but before interest and taxes.