A Company Had Net Income of $242,000

question 115

Multiple Choice

A company had net income of $242,000. Depreciation expense is $26,000. During the year, accounts receivable and inventory increased $15,000 and $40,000, respectively. Prepaid expenses and accounts payable decreased $2,000 and $14,000, respectively. There was also a loss on the sale of equipment of $17,000. How much cash was provided by operating activities?

• A) $218,000.
• B) $201,000.
• C) $278,000.
• D) $299,000.

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Definitions:

Marginal Utility

The supplementary utility or satisfaction derived by a consumer from the consumption of one more unit of a product or service.

Entire Budget

The total estimated expenditure of an individual, organization, or government for a defined period.

Utility Maximizing

A principle in economics where individuals or firms aim to achieve the highest level of satisfaction or profit from their consumption or production decisions, subject to their resources and constraints.

Marginal Utility

The additional satisfaction or utility gained by consuming an additional unit of a good or service.