Use the Selected Data from Pinecrest Company's Financial Statements to Answer

question 114

Multiple Choice

Use the selected data from Pinecrest Company's financial statements to answer the following question. $$\begin{array} { l r r } & \underline { 2017 } & \underline { 2016 } \\\text { Cash } & \$ 22,000 & \$ 14,000 \\\text { Accounts receivable } & 42,000 & 16,000 \\\text { Merchandise inventory } & 22,000 & 83,000 \\\text { Prepaid expenses }& \underline { 23,000 } & \underline { 18,000 } \\\text { Total current assets } & \underline { \mathbf { \$ 1 0 9 , 0 0 0 } } & \underline { \mathbf { \$ 1 3 1 , 0 0 0 } } \\\\\text { Total current liabilities } & \$ 65,000 & \$ 72,000 \\\text { Net credit sales } & 221,000 & 326,000 \\\text { Cost of goods sold } & 168,000 & 299,000 \\\text { Net cash flow from operating activities } & 16,000 & 29,000\end{array}$$ ​
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-Refer to the data for Pinecrest Company. ?
Which of the following statements is true?

• A) Net income must be at least $36,000 for 2017.
• B) Net income must be less than $36,000 for 2017.
• C) Cash flows from operating activities is twice as large as net income for 2017.
• D) The amount of net income for 2017 cannot be determined based on the data provided.

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Looking for Work

The act of seeking employment or opportunities to earn income.

Unemployment Rate

The rate of joblessness among individuals in the labor force who are earnestly seeking employment.

Labor Force

The total number of people who are employed and those unemployed but seeking work in an economy.

Total Population

The complete count of all individuals within a specified area or country at a given time.