Tildon Company Reported Net Income of $35,000 for the Year

question 15

Multiple Choice

Tildon Company reported net income of $35,000 for the year. During the year, accounts receivable increased by $7,000, accounts payable increased by $3,000 and depreciation expense of $5,000 was recorded. Net cash provided by operating activities for the year is:

• A) $50,000.
• B) $34,000.
• C) $36,000.
• D) $35,000.

---

Definitions:

Average Tax Rate

The proportion of total income that is paid in taxes, calculated by dividing the total amount of taxes paid by the taxpayer’s total income.

Tax Liability

The total amount of tax owed to the government by an individual, corporation, or other entity in a specified tax period.

Form 1040EZ

A simplified tax form for individuals with straightforward financial situations, allowing them to report income and calculate taxes owed.

Taxable Income

The portion of an individual's or corporation's income used to determine how much tax is owed to the government.