A Company Had Net Income of $230,000

question 23

Multiple Choice

A company had net income of $230,000.Depreciation expense is $26,000.During the year accounts receivable and inventory increased $15,000 and $40,000, respectively.Prepaid expenses and accounts payable decreased $2,000 and $4,000, respectively.There was also a loss on the sale of equipment of $3,000.Using the indirect method, what is the amount of net cash flows from operating activities on the statement of cash flows?

• A) $196,000
• B) $202,000
• C) $276,000
• D) $288,000

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Definitions:

Iphigenia

A figure in Greek mythology, daughter of Agamemnon, whose story varies but is often associated with sacrifice for divine favor in war.

Agamemnon

A mythical king of Mycenae who was a central figure in the Trojan War, leading the Greek forces in the epic struggle documented in Homer's Iliad.

Trojan War

A significant conflict in Greek mythology that was fought between the city of Troy and the Greeks, sparked by the abduction of Queen Helen.

Sacrifices

The act of giving something up, destroying, or surrendering something valued for the sake of something considered as having a higher or more pressing claim, often seen in religious contexts but applicable in varied life situations.