In Wallace Company, Net Income Is $260,000

question 140

Multiple Choice

In Wallace Company, net income is $260,000. If accounts receivable increased $140,000 and accounts payable decreased $40,000, net cash provided by operating activities using the indirect method is:

• A) $80,000.
• B) $160,000.
• C) $360,000.
• D) $440,000.

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Definitions:

Perfect Competition

A market structure characterized by many sellers and buyers, homogeneous products, and no single entity able to influence prices.

Barriers to Entry

Economic, procedural, or regulatory obstacles that prevent new competitors from easily entering an industry or area of business.

Breaking Even

The point at which total costs and total revenue are equal, resulting in no net loss or gain for a business.

Monopolistic Competitor

A firm in a market structure where many companies sell products that are similar but not identical, allowing for some control over prices.