Lator Company Reported Net Income of $120,000 for the Year

question 12

Multiple Choice

Lator Company reported net income of $120,000 for the year ended December 31, 2012. During the year, inventories decreased by $18,000, accounts payable decreased by $27,000, depreciation expense was $30,000 and a loss on disposal of equipment of $13,500 was recorded. Net cash provided by operations in 2012 using the indirect method was:

• A) $208,500.
• B) $127,500.
• C) $115,500.
• D) $154,500.

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Definitions:

Affiliation Motive

The drive to build and maintain positive interpersonal relationships and to be part of a group.

McClelland's Model

A psychological theory of motivation that asserts people are motivated by three primary needs: achievement, affiliation, and power.

Personal Relationships

Interpersonal connections formed between individuals based on shared interests, emotions, and other social commitments.

Esteem Needs

A higher-level requirement in Maslow's hierarchy of needs that includes the desire for respect, status, recognition, and self-esteem.