Downsview Corp Based on the Above Information, the Cash Provided by Operating

question 59

Multiple Choice

Downsview Corp. reported net income for calendar 2020 of $ 375,000. Additional information follows: $\begin{array}{ll} \text { Depreciation on property, plant and equipment } & \$ 187,500 \\\text { debts expense } & 68,750 \\\text { Purchase of equipment} & 31,250 \\ \text { t paid on long-ter } m \text { bonds} &18,750 \\\text { sale of equinment } &106,250 \\\end{array}$ Based on the above information, the cash provided by operating activities (indirect method) for calendar 2020 is

• A) $ 706,250.
• B) $ 737,500.
• C) $ 756,250.
• D) $ 787,500.

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Definitions:

Variable Costs

Expenses that change in proportion to the activity of a business, such as materials and labor costs.

Quantity of Output

Refers to the total amount of goods or services produced by a company over a specific period.

Costs

The total expenses incurred by a business in producing goods or providing services.

Variable Cost

relates to expenses that vary directly with the level of production or business activity, such as raw materials and labor costs.