The Club, Incorporated (TCI)presents Its Statement of Cash Flows Using

question 91

Multiple Choice

The Club, Incorporated (TCI) presents its statement of cash flows using the indirect method. For the current year the Company reported net income of $120,000. All sales are on account and the balance in the Accounts Receivable account increased by $7,000. The balance in the unearned revenue account decreased by $6,000. Also, the company reported depreciation expense of $15,000 and a gain on the sale of equipment of $8,000. Based on this information alone, the amount of the cash flow from operating activities shown on statement of cash flows is

• A)$114,000
• B)$126,000
• C)$128,000
• D)$130,000

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Definitions:

Kleinig

John Kleinig is a philosopher and ethicist known for his work in the field of professional ethics, focusing on police ethics.

Proportionality

The principle of ensuring that actions, punishments, or regulations are fair and reasonable in relation to the offense or situation at hand.

Rotten Apple Theory

A theory suggesting that individual misconduct within a police department is the result of corrupt individuals rather than systemic problems.

Organizational

Pertaining to the structure and function of organizations or the study thereof, emphasizing systems, management, and efficiency.