A Company Had Net Income of $990,000

question 106

Multiple Choice

A company had net income of $990,000. Depreciation expense is $110,000. During the year, accounts receivable and inventory increased $60,000 and $160,000, respectively. Prepaid expenses and accounts payable decreased $8,000 and $16,000, respectively. There was also a loss on the sale of equipment of $12,000. How much cash was provided by operating activities?

• A) $860,000.
• B) $884,000.
• C) $1,180,000.
• D) $1,228,000.

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Definitions:

Thread Sealant

A chemical compound used to seal threaded joints and prevent leaks in plumbing, piping, or other threaded connections.

Countershaft Gear

A gear located on the countershaft in a gearbox, which engages with other gears to transmit power between the input and the output shafts.

Mainshaft Gear

A gear located on the mainshaft of a transmission, responsible for transmitting torque from the engine to the drive wheels at varying speeds.

Timing Purposes

Related to adjusting the engine's timing for optimal performance and efficiency.