The Following Information Relates to the Red Rocket Company What Is the Net Cash Provided by Operating Activities?
A)

question 24

Multiple Choice

The following information relates to the Red Rocket Company: $\begin{array}{ll}\text { Increase in accounts receivable } & \$ 80 \\\text { Increase in bonds payable } & 1,000 \\\text { Decrease in inventory } & 75 \\\text { Net income } & 10.000\\\text { Amortization of premium on bonds payable } & 260 \\\text { Increase in income taxes payable } & 60 \\\text { Depreciation expense } & 2,000 \\\text { Decrease in accounts payable } & 380\end{array}$
What is the net cash provided by operating activities?

• A)$ 9, 065
• B)$11, 415
• C)$11, 935
• D)$12, 415

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Definitions:

Balance Sheet

A balance sheet is a financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating its capital structure.

Monthly Statements

Monthly statements are periodic financial reports issued by banks, credit card companies, and other institutions showing transactions, balances, and other financial activities over a month.

Mismanagement Decisions

Decisions that result in a poor direction, operation, or administration of a business, leading to its decline or failure.

Small Businesses

Enterprises characterized by a small number of employees, limited revenue, and size within their industry, often privately owned and operated.