Use the Following Information to Calculate the "Net Income Available

question 13

Multiple Choice

Use the following information to calculate the "net income available to ordinary shareholders":

• A)$3,860,000
• B)$3,870,000
• C)$3,950,000
• D)$3,960,000

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Definitions:

Accounts Receivable

Represents money owed to a company by its customers for goods or services provided on credit.

Sales

Revenue earned from the exchange of goods or services during a specific period.

Direct Approach

A method used in cash flow statements where cash receipts and payments are reported directly to calculate net cash from operating activities.

Indirect Approach

A method used in cash flow statements where net income is adjusted for non-cash transactions and changes in working capital to calculate operational cash flow.