Use the Indirect Method to Answer Questions the Following Information

question 26

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 the change in cash for Felix Company?

• A)$310
• B)$205
• C)$330
• D)$230

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Definitions:

Breach of Contract

A violation of any of the agreed-upon terms and conditions of a binding contract.

Antiassignment Clause

A contractual provision that prohibits the transfer of rights or delegation of duties under the contract to another party without prior consent.

Breach of Contract

The failure to perform any term of a contract, written or oral, without a legitimate legal excuse, leading to legal actions for remedies.

Statute of Frauds

A legal principle requiring certain contracts to be in writing and signed by the party to be charged, to prevent fraud and perjuries.