Gibson Company Recorded the Following Cash Transactions for the Year

question 94

Multiple Choice

Gibson Company recorded the following cash transactions for the year: Paid $180,000 for salaries.
Paid $80,000 to purchase office equipment.
Paid $20,000 for utilities.
Paid $8,000 in dividends.
Collected $350,000 from customers.
What was Gibson's net cash provided by operating activities?

• A)$150,000
• B)$70,000
• C)$170,000
• D)$142,000

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Definitions:

Information Technology

The use of computers, software, networks, and other digital devices to store, process, retrieve, and transmit information.

Weighted-Average Method

A method of costing inventory that allocates the mean cost of available goods for sale to the ending inventory and the cost of goods sold.

Assembly Department

A part of a manufacturing firm where parts are put together to create finished goods.

Work In Process Inventory

Goods partially completed during the manufacturing process, not yet ready for sale.