Use the Indirect Method to Answer Questions the Following Information

question 29

Multiple Choice

Use the indirect method to answer questions The following information is available for Felix Company:
$$\begin{array} { l r l r } \text { Net income } & \$ 300 & \text { Decrease in plant and equip. } & \$ 40 \\\text { Depreciation expense } & 20 & \text { Increase in deferred tax asset } & 5 \\\text { Gain on sale of assets } & 35 & \text { Decrease in long-term debt } & 50 \\\text { Increase in inventories } & 25 & \text { Decrease in accounts payable } & 15\end{array}$$
-What is cash from investing activities for Felix Company?

• A)$5
• B)$40
• C)$75
• D)$10

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Definitions:

Negative Balance

Occurs when the amount of money in an account falls below zero, indicating a deficit.

Imports

Imports are goods or services brought into one country from another country for sale, often to satisfy domestic demand for products not locally produced.

Importing

The purchase of goods and services from foreign sources.