Bertrand, Inc What Net Cash Provided by Operating Activities Should Bertrand Report

question 11

Multiple Choice

Bertrand, Inc.prepares a statement of cash flows.In 2010, Bertrand had net income of $45, 000.In addition, the following information is available: $\begin{array}{ll}\text { Gain on sale of land } & \$ 16,000 \\\text { Decrease in inventories } & 10,000 \\\text { Amortization of patents } & 4,000 \\\text { Increase in prepaid expenses } & 3,000\end{array}$
What net cash provided by operating activities should Bertrand report in 2010?

• A)$46, 000
• B)$72, 000
• C)$40, 000
• D)$50, 000

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Definitions:

Budgeted Income Statement

A financial statement that projects the income and expenses for a specific period in the future, helping management with planning and decision-making.

Accrued Income Taxes

Accrued income taxes are taxes that a company has incurred but has not yet paid during the reporting period.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the decline in value over time.

Budgeted Balance Sheet

A financial statement that projects assets, liabilities, and equity balances at the end of a future period based on planned business activities.