Galaxy Corporation Reported Net Income of $75,000 for the Year

question 99

Multiple Choice

Galaxy Corporation reported net income of $75,000 for the year.During the year, accounts receivable increased by $6,000, accounts payable decreased by $3,000 and depreciation expense of $5,000 was recorded.Using the indirect method, cash provided by operating activities for the year is

• A)$80,000.
• B)$78,000.
• C)$70,000.
• D)$71,000.

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Definitions:

Form 1040EZ

A simplified federal income tax form for individual taxpayers with straightforward tax situations, no longer in use after the 2018 tax year.

Income Tax Withholding

The process by which employers deduct a portion of employees' wages to pay directly to the government as prepayment for the employees' income tax liabilities.

Tax Liability

The total amount of tax owed by an individual, corporation, or other entity to a taxing authority, after deductions, credits, and exemptions.

Administrative Source

Information collected and maintained as part of the operations of administrative systems or organizations, often used for research or policy development.