Kowalczyk Inc

question 39

Multiple Choice

Kowalczyk Inc.'s accounts receivable arising from sales to customers amounted to $80,000 and $70,000 at the beginning and end of 2022, respectively.Income reported on the income statement for 2022 was $252,000.Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is

• A)$252,000.
• B)$242,000.
• C)$262,000.
• D)$332,000.

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Definitions:

Income Elasticity

Measures how the quantity demanded of a good responds to a change in consumer income.

Normal Good

An item for which demand increases as the income of consumers increases, showing a direct relationship between income and demand.

Income Elasticity

A measure of how much the demand for a good changes as the income of consumers changes.

Normal Good

A good for which demand increases as the income of consumers increases, showing a positive correlation between income and demand.