Given the Following Information, Calculate the Net Cash from Operating

question 27

Multiple Choice

Given the following information, calculate the net cash from operating activities for the period.
Profit $780 000
Accounts receivable decreased by 5000
Proceeds from the sale of equipment 34 000
Inventory increased by 22 000
Depreciation expense 36 000
Carrying value of equipment sold 1000

• A) $832 000
• B) $766 000
• C) $810 000
• D) $805 000

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Definitions:

Cumulative Preferred Stock

A type of preferred stock whose dividends accumulate if not paid in the agreed periods.

Par Value

The nominal or face value of a stock or bond as stated by the issuer, often used in the accounting of capital accounts.

Dividend

A share of a company's profits paid out to its shareholders, typically in the form of cash or additional stock.

Cumulative Preferred Stock

A type of preferred stock where missed dividend payments accumulate and must be paid out before any dividends can be issued to common stockholders.