Net Cash Flow from Operating Activities for 2015 for Spencer

question 38

Multiple Choice

Net cash flow from operating activities for 2015 for Spencer Corporation was $400,000. The following items are reported on the financial statements for 2015: $\begin{array}{lr}\text { Cash dividends paid on common stock } & \$ 20,000 \\\text { Depreciation and amortization } & 12,000 \\\text { Increase in accounts receivables } & 24,000\end{array}$ Based on the information above, Spencer's net income for 2015 was

• A) $412,000.
• B) $396,000.
• C) $364,000.
• D) $356,000.

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Definitions:

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts, resulting in the division of assets among creditors.

Personal Expenses

Personal expenses are out-of-pocket costs individuals incur in their daily lives, not related to business or professional obligations.

Eliminating Debts

The process of paying off or settling outstanding debts to reach a state of being debt-free.

Securities And Exchange Commission

A U.S. federal agency responsible for enforcing the federal securities laws and regulating the securities industry, stock and options exchanges.