Bath Works Had a Net Loss of $5,100 in 2017

question 94

Multiple Choice

Bath Works had a net loss of $5,100 in 2017.During the year, a gain of $4,000 was recognized on the sale of fully depreciated equipment that had cost $14,000 and had no salvage value.Depreciation expense during the year totaled $17,400.Changes in the following selected accounts occurred during the year: $$\begin{array} { l c } & \text { Increase/(Decrease) } \\ \text { Accounts receivable } & \$ 6,500 \\\text { Inventory } & ( 3,200 ) \\\text { Interest payable } & 1,200 \\\text { Accounts payable } & ( 1,000 ) \\\text { Accumulated depreciation } & 3,400 \\\text { Notes payable } & ( 6,400 ) \\\text { Long-term investments } & ( 9,000 ) \end{array}$$ Using the indirect method, how much is the company's net cash provided(used) by operating activities?

• A)$15,800
• B)$9,200
• C)$8,800
• D)$5,200

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Definitions:

Production Possibilities Frontier

An illustration representing the peak production capabilities for two different items, utilizing a specific combination of resources and factors.

Opportunity Cost

The burden of not opting for the immediate subsequent best possibility when making a selection.

Slope

A measure of the steepness or incline of a line, often calculated as the ratio of the vertical change to the horizontal change between two points on the line.

Corn

A staple grain widely cultivated for food, animal feed, and as a raw material in industry.