Pinecrest Company Use the Selected Data from Pinecrest Company's Financial Statements to Statements

question 21

Multiple Choice

Pinecrest Company
Use the selected data from Pinecrest Company's financial statements to answer the following question.
-Refer to the data for Pinecrest Company.
Which of the following statements is true?

• A)Net income must be at least $36,000 for 2016.
• B)Net income must be less than $36,000 for 2016.
• C)Cash flows from operating activities is twice as large as net income for 2016.
• D)The amount of net income for 2016 cannot be determined based on the data provided.

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Definitions:

Tax Bracket

A range of incomes taxed at a particular rate, with progressive tax systems applying higher rates to higher income levels.

Treasury Bonds

Long-term government securities issued by the U.S. Department of the Treasury, with a maturity period typically extending beyond ten years, offering periodic interest payments and repaying the principal at maturity.

Bid Price

The maximum price that a buyer is willing to pay for a security.

Ask Price

The price at which a seller is willing to sell a security or asset.