The Net Income Reported on the Income Statement for the Current

question 85

Multiple Choice

The net income reported on the income statement for the current year was $310,000.Depreciation recorded on fixed assets and amortization of patents for the year were $40,000 and $9,000, respectively.Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: $$\begin{array} { l r r } & \underline { \text { End } } & \text { Beginning } \\\text { Cash } & \$ 50,000 & \$ 60,000 \\\text { Accounts receivable } & 112,000 & 108,000 \\\text { Inventories } & 105,000 & 93,000 \\\text { Prepaid expenses } & 4,500 & 6,500 \\\text { Accounts payable (merchandise creditors) } & 75,000 & 89,000\end{array}$$ What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?

• A) $233,000
• B) $289,000
• C) $387,000
• D) $331,000

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Definitions:

Interpersonal Conflicts

Conflicts that occur between two or more individuals due to differences in opinions, desires, needs, or interests.

Status Hierarchies

The ranking of individuals or groups according to various criteria, leading to differential treatment based on one's position within the hierarchy.

Naturalistic Fallacy

A bias toward believing that biological adaptations are inherently good or desirable.

Lamarckian Evolution

A theory of evolution based on the principle that physical changes acquired over the life of an organism (such as muscle growth) can be inherited by its offspring.