$\text { A corporation had the following earnings and loss record for the years } 1997 \text { through 2002: }$

question 95

Multiple Choice

$\text { A corporation had the following earnings and loss record for the years } 1997 \text { through 2002: }$
$\begin{array}{cc}1997 & \$ 200,000 \\1998 & 100,000 \\1999 & 100,000 \\2000 & (800,000) \\2001 & 200,000 \\2002 & 300,000\end{array}$
-In 2002 the corporation in Figure 2.1 will have taxable income of

• A) $100,000
• B) $200,000
• C) $0
• D) $300,000

Identify how noncash transactions are reported in financial statements.

Apply the indirect method to prepare the operating activities section of the statement of cash flows.

Apply knowledge of accounting principles to calculate cash payments and cash receipts from operating activities using the direct method.

Analyze the impact of changes in current asset and liability accounts on cash flows.

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