The Following Data for Larson Co $\bullet$ Equipment Costing $125,000 Was Purchased for Cash

question 129

Multiple Choice

The following data for Larson Co. for the year ending December 31, Year 2, and the preceding year ended December 31, Year 1, are available: In addition to the balance sheet data, assume that: $\bullet$ Equipment costing $125,000 was purchased for cash. $\bullet$ Equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000. $\bullet$ The stock was issued for cash. $\bullet$ The only entries in the retained earnings account were net income of $51,000 and cash dividends declared of $13,000.What are the net cash flows from operating, investing, and financing activities for Year 2?

• A)operating: $112,000; investing: $110,000; financing: $20,000
• B)operating: $112,000; investing: ($110,000); financing: $20,000
• C)operating: $61,000; investing: ($110,000); financing: $71,000
• D)operating: $144,000; investing: ($110,000); financing: ($12,000)

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Definitions:

Alpha Subunits

Components of G-protein coupled receptor complexes involved in transmitting signals from a wide variety of receptors into the interior of the cell.

Sympathetic Nervous System

A part of the autonomic nervous system that serves to accelerate the heart rate, constrict blood vessels, and raise blood pressure, commonly activated in response to stress or fear.

Parasympathetic Nervous System

A division of the autonomic nervous system responsible for conserving energy and promoting a state of calmness and rest.

Acetylcholine

A neurotransmitter in both the central and peripheral nervous systems that plays an important role in muscle activation, memory, and learning.