A Company's Income Statement Showed the Following: Net Income, $124,000

question 162

Multiple Choice

A company's income statement showed the following: net income, $124,000 and depreciation expense, $30,000. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $9,400; merchandise inventory increased $18,000; and accounts payable increased $3,400. Calculate the net cash provided or used by operating activities.

• A)$148,800.
• B)$178,000.
• C)$159,200.
• D)$118,000.
• E)$123,200.

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Definitions:

Supplementary Data

Additional information provided in a company's financial statements, giving further context or explanation to the figures presented in the primary statements.

Prospectus Part

A prospectus part is a section within a prospectus document that discloses vital information about a company's operations, financial status, and risks before a public offering of securities.

Regulation S-K

A regulation under the U.S. Securities and Exchange Commission that outlines reporting requirements for various SEC filings used by public companies.

Financial Disclosure

The process of releasing all relevant financial information about a company to the public, ensuring transparency and aiding in informed decision making.