In Preparing a Company's Statement of Cash Flows for the Most

question 237

Multiple Choice

In preparing a company's statement of cash flows for the most recent year using the indirect method,the following information is available: $\begin{array}{lr}\text { Net income for the year was } & 52,000 \\\text { Accounts payable increased by } & 18,000 \\\text { Accounts receivable decreased by } & 25,000 \\\text { Inventories decreased by } & 5,000 \\\text { Cash dividends paid were } & 14,000 \\\text { Depreciation expense was } & 20,000\end{array}$ Net cash provided by operating activities was:

• A)$120,000.
• B)$71,000.
• C)$70,000.
• D)$24,000.
• E)$110,000.

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Definitions:

Domestic-Born Workers

Domestic-Born Workers refer to individuals born in the country where they are employed, as opposed to foreign-born or immigrant workers.

Labor Markets

The supply and demand for labor, where employers seek to hire workers and workers seek employment, influenced by wages, working conditions, and level of skill.

Illegal Immigrants

Individuals who enter or reside in a country without the necessary authorization or legal permission from the government.

Minimum Wage Laws

Legislation that sets the lowest hourly rate that can be paid to workers, aimed at ensuring a minimum standard of living.