The Comparative Balance Sheets of Posner Company, for Years 1

question 175

Multiple Choice

The comparative balance sheets of Posner Company, for Years 1 and 2 ended December 31, appear below in condensed form: Additional data for the current year are as follows: (a) Fully depreciated equipment costing $60,000 was scrapped, no salvage, and new equipment was purchased for $183,200.(b) Bonds payable for $100,000 were retired by payment at their face amount.(c) 5,000 shares of common stock were issued at $13 for cash.(d) Cash dividends declared and paid, $25,000.​
What are the net cash flows from operating, investing, and financing activities for Year 2?

• A)operating: $108,000; investing: ($105,200); financing: ($60,000)
• B)operating: $151,800; investing: ($84,200); financing: ($64,600)
• C)operating: $122,200; investing: ($84,200); financing: ($35,000)
• D)operating: $172,200; investing: ($109,200); financing: ($60,000)

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Definitions:

Population Variance

The variance calculated from the entire population of a dataset, representing the true measure of its variability.

Chi-Squared Distribution

A probability distribution used in statistical hypothesis tests that is built by squaring independent standard normal random variables.

Random Variable

A measurable variable with outcomes based on the randomness of specific incidents.

Significance Level

The threshold below which a p-value is considered statistically significant, typical levels are 0.05, 0.01, etc., indicating the probability of rejecting the null hypothesis when it is true.