Nelson Company Experienced the Following Transactions During Year 1, Its

question 91

Multiple Choice

Nelson Company experienced the following transactions during Year 1, its first year in operation.Acquired $7,400 cash by issuing common stock.Provided $3,700 of services on account.Paid $1,950 cash for operating expenses.Collected $2,600 of cash from customers in partial settlement of its accounts receivable.Paid a $170 cash dividend to stockholders.What is the amount of net cash flows from operating activities that will be reported on the Year 1 statement of cash flows?

• A)$1,750
• B)$340
• C)$1,580
• D)$650

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Definitions:

Structurally Unemployed

individuals who are unemployed due to structural changes in the economy that make their skills or industries obsolete.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, typically used as an indicator of inflation.

Economy Expanding

A phase where a nation's economic activity is growing, marked by increased production, employment, and consumption.

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Economic downturns marked by decreasing industrial production, employment, and sales, often lasting from a few months to more than a year.