Harbor Company Reported Net Income of $60,000 for the Year

question 17

Multiple Choice

Harbor Company reported net income of $60,000 for the year ended December 31,2011.During the year,inventories decreased by $12,000,accounts payable decreased by $18,000,depreciation expense was $20,000 and a gain on disposal of equipment of $9,000 was recorded.Net cash provided by operating activities in 2011 using the indirect method was

• A)$119,000.
• B)$65,000.
• C)$77,000.
• D)$55,000.

---

Definitions:

Opportunity Cost

The cost of foregone alternatives when a choice is made, represented by the benefits that could have been received by choosing the next best alternative.

Soybeans

Refers to a type of legume native to East Asia, widely grown for its edible bean which has numerous uses.

Comparative Advantage

The ability of a country or individual to produce a particular good or service at a lower opportunity cost than others.

Absolute Advantage

The capability of a country, individual, company, or region to produce a good or provide a service more efficiently than its competitors when using the same amount of resources.