Jarvis, Inc

question 62

Multiple Choice

Jarvis, Inc.reported net income of $34,000 for the year ended December 31, 2011 Included in net income were depreciation expense of $8,400 and a gain on sale of equipment of $1,700.Each of the following accounts increased during 2011:
What is the amount of cash provided by operating activities for Jarvis, Inc.for the year ended December 31, 2011?

• A)$31,200
• B)$33,900
• C)$22,200
• D)$32,200

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Definitions:

Payoff Profile

A payoff profile is a graphical representation showing the potential profit or loss of an investment strategy at various prices of the underlying asset at expiration.

Put Option

A financial derivative that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified timeframe.

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy a specified amount of an underlying asset at a predetermined price within a set timeframe.

Swap Contract

A financial agreement between two parties to exchange sequences of cash flows for a set period according to specified terms.