The Net Income for the Year Ended December 31, 2015

question 22

Multiple Choice

The net income for the year ended December 31, 2015, for Oliva Company was $1,900,000. Additional information is as follows: $\begin{array}{lc}\text { Depreciation on plant assets } & \$ 600,000 \\\text { Amortization of leasehold improvements } & 340,000 \\\text { Provision for doubtful accounts on short-term receivables } & 120,000\\\text { Provision for doubtful accounts on long-term receivables } & 100,000 \\\text { Interest paid on short-term borrowings } & 80,000 \\\text { Interest paid on long-term borrowings } & 60,000\end{array}$ Based solely on the information given above, what should be the net cash provided by operating activities in the statement of cash flows for the year ended December 31, 2015?

• A) $2,960,000.
• B) $3,060,000.
• C) $3,040,000.
• D) $3,200,000.

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Definitions:

Injunction

A court order requiring a party to do or refrain from doing specific acts, often issued to protect a plaintiff's rights while a case is pending.

Federal Supremacy

The ability of federal laws to defeat inconsistent state laws in case they conflict.

Judicial Activism

The actions of a court that goes beyond its established legal boundaries, often seen in the creation of new legal precedents or in making decisions based on personal or political considerations rather than existing law.

Federalism

Government marked by mixed or compound levels, including a central of federal level and one or more regional levels, in a single system.