The Net Income Reported on the Income Statement for the Current

question 8

Multiple Choice

The net income reported on the income statement for the current year was $245000. Depreciation was $40000. Account receivable and inventories decreased by $12000 and $35000 respectively. Prepaid expenses and accounts payable increased respectively by $1000 and $8000. How much cash was provided by operating activities?

• A) $296000
• B) $339000
• C) $323000
• D) $311000

---

Definitions:

Hanger Bearing Shim Pack

A set of thin pieces of material used to adjust the clearance or space between a hanger bearing and its mounting surface.

Chassis Crossmember

Structural components that reinforce the chassis of a vehicle by connecting its sides, providing added stability and support.

Driveshaft Angles

The angles formed by the driveshaft and the components it connects (such as the gearbox and differential), crucial for efficient power transmission and minimizing wear.