Profit Reported for the Current Year Was $100,000

question 89

Multiple Choice

Profit reported for the current year was $100,000.Depreciation expense was $25,000.Accounts Receivable and Inventories decreased $5,000 and $15,000, respectively.Prepaid Expenses and Accounts Payable increased, respectively, by $500 and $4,000.Using the indirect method, how much cash was provided by operating activities?

• A)$101,500
• B)$123,500
• C)$140,500
• D)$148,500

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Definitions:

Wrongful Interference

An intentional act by one party to disrupt a contractual or business relationship between other parties, causing harm.

Conversion

An intentional tort that involves the unauthorized taking or use of someone else's personal property.

Intentional Tort

A wrongful act done intentionally that causes harm to another person, distinguishable from negligence or accidental harm.

Defamation

A legal term that refers to false statements made by one party about another, which cause harm to that person's reputation.