During 2011, Orton Company Earned Net Income of $384,000 Which

question 69

Multiple Choice

During 2011, Orton Company earned net income of $384,000 which included depreciation expense of $78,000.In addition, the company experienced the following changes in the account balances listed below:
Based upon this information what amount will be shown for net cash provided by operating activities for 2011?

• A)$492,000
• B)$465,000
• C)$285,000
• D)$267,000

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales.

Contribution Margin

The amount by which sales revenue exceeds variable costs, indicating how much revenue contributes to fixed costs and profit.

Variable Costs

Variable costs that change in direct correlation with production output or sales figures, like labor costs and materials expenses.

Fixed Costs

Expenses that do not change in total despite fluctuations in the volume of goods or services produced or sold.