Net Cash Flow from Operating Activities for 2015 for Graham

question 113

Multiple Choice

Net cash flow from operating activities for 2015 for Graham Corporation was $330,000. The following items are reported on the financial statements for 2015: $\begin{array}{ll}\text { Depreciation and amortization } & \$ 20,000 \\\text { Cash dividends paid on common stock } & 12,000 \\\text { Increase in accounts receivable } & 24,000\end{array}$ Based only on the information above, Graham's net income for 2015 was:

• A) $286,000.
• B) $294,000.
• C) $326,000.
• D) $334,000.

Understand the implications of errors in inventory reporting on financial statements.

Analyze the effects of rising and falling prices on inventory valuation and company profitability.

Interpret the financial metrics related to inventory management, such as inventory turnover and days’ sales in inventory.

Appreciate the importance of accurately reporting inventory in maintaining correct records of owner's equity.

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Definitions:

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Specific objectives or outcomes that an individual or group aims to achieve in completing a task.

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Constructive roles played by individuals in a group that contribute to the overall effectiveness and success of the group.

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A psychological phenomenon in which people in a group strive for consensus to the extent that they set aside their personal beliefs or dissenting opinions.