Use the Following Information and the Indirect Method to Calculate

question 70

Multiple Choice

Use the following information and the indirect method to calculate the net cash provided or used by operating activities: $$\begin{array} { | l | r | } \hline \text { Cash paid for purchase of plart assets } & \$ 15,000 \\\hline \text { Decrease in interest payable } & 2,000 \\\hline \text { Depreciation expense } & 30,000 \\\hline \text { Gain caretirement of bonds } & 32,000 \\\hline \text { Increase in accounts } & 40,000\\\hline \text { Loss on sale of plart assets } & 5,000 \\\hline \text { Net Incorne } & 76,000 \\\hline\end{array}$$

• A) $22,000
• B) $117,000
• C) $69,000
• D) $37,000
• E) $91,000

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Definitions:

Price Ceiling

A legal maximum price set by the government for goods and services, intended to prevent prices from rising above a certain level.

Equilibrium Price

The price at which the quantity of a product offered is equal to the quantity of the product in demand, leading to market stability where there is no shortage or surplus.

Temporary Surplus

A situation where the supply of a product exceeds its demand for a short period, often leading to price reductions.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a particular price.