The Activities for the Year Ended December 31, 2021 Included

question 15

Multiple Choice

The activities for the year ended December 31, 2021 included the following: • 2021's net income after taxes totaled $125,000.
• Accounts receivable increased $32,000
• Recorded a $10,000 goodwill impairment loss during the year
• Inventory decreased $8,000
How much would be presented as cash flow from operations?

• A)$85,000
• B)$111,000
• C)$127,000
• D)$135,000

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Definitions:

Right

An interest given and protected by law. In corporation law, an option to purchase shares given to existing shareholders, permitting them to buy quantities of newly issued securities in proportion to their current ownership.

Easement by Prescription

A legal right to use another's land for a specific purpose, acquired through continuous use over a period as defined by law without the owner’s explicit permission.

Openly

In a manner that is not secretive or hidden; conducting actions in a visible and public way, often implying transparency or honesty.

Continuously

Occurring without interruption or cessation; ongoing.