Jarvis, Inc What Is the Amount of Cash Provided by Operating Activities

question 80

Multiple Choice

Jarvis, Inc. reported net income of $44,000 for the year ended December 31, 2015 Included in net income were depreciation expense of $8,400 and a gain on sale of equipment of $1,700. Each of the following accounts increased during 2015: $$\begin{array} { l l } \text { Accounts receivable } & \$ 2,200 \\\text { Inventory } & \$ 4,500 \\\text { Prepaid rent } & \$ 6,800 \\\text { Available-for-sale securities } & \$ 1,000 \\\text { Accounts payable } & \$ 5,000\end{array}$$ What is the amount of cash provided by operating activities for Jarvis, Inc. for the year ended December 31, 2015?

• A) $41,200
• B) $43,900
• C) $32,200
• D) $42,200

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Definitions:

Vendor-Managed Inventory

A supply chain management practice where the supplier assumes responsibility for maintaining an inventory at the buyer's location, often optimizing stock levels and reducing costs.

Channel Practices

The strategies and methods businesses use to distribute their products or services through various marketing channels to the end customer.

Federal Legislation

Laws enacted by the national government that are applicable across the entire country, often governing matters of national interest.

Clayton Act

A U.S. antitrust law, enacted in 1914, aiming to promote fair competition and prevent unlawful monopolies or practices.