Hayden Coreported $26,000 of Cash Provided by Operating Activities and the the Following

question 2

Multiple Choice

Hayden Co.reported $26,000 of cash provided by operating activities and the following data: $$\begin{array} { l r } \text { Amortization } & \$ 45,000 \\\text { Increase in accountspayable } & 12,000 \\\text { Increase in wagespayable } & 8,000 \\\text { Increase in inventory } & 9,000 \\\text { Decrease in taxes payable } & 2,000\end{array}$$
Hayden's net income\loss for the period was:

• A)$10,000 income
• B)$54,000 loss
• C)$28,000 loss
• D)$8,000 loss

---

Definitions:

Freight Costs

Freight Costs entail the charges incurred for the transportation of goods by land, sea, or air.

Perpetual System

A system for managing inventory that instantly logs sales or purchases via computerized point-of-sale systems and enterprise asset management software.

Inventory

A company's complete stock of items and materials, kept for the aim of either resale or use in manufacturing processes.

Sales Discount

A reduction in the price of a product or service offered by a seller to the purchaser, usually provided for prompt payment or in specific situations.