Carpet World Inc If Carpet World Uses the Indirect Method to Prepare the \begin{array}

question 83

Multiple Choice

Carpet World Inc.reported the following information for 2016 and 2017. $\begin{array} { r r } &\underline { \mathbf { 2 0 1 6 } } & \underline { \mathbf { 2 0 1 7 } } \\ \text {Accounts receivable }&\$ 51,000 & \$ 57,000 \\\text {Inventories }& 42,000 & 39,000 \\\text { Accounts payable}& 43,000 & 48,000 \\\text { Net income}& & 60,000 \\\text { Depreciation expense}& & 8,000 \end{array}$ If Carpet World uses the indirect method to prepare the operating activities section of the statement of cash flows, what amount will be reported as net cash inflow from operating activities for 2017?

• A) $64,000
• B) $66,000
• C) $68,000
• D) $70,000

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Definitions:

Thematic Apperception Test

A projective psychological test where subjects are shown pictures and asked to create a story, revealing their underlying motives, feelings, and attitudes.

Ambiguous Picture

An image or representation that can be interpreted in more than one way due to its unclear or indeterminate nature.

Stories

Narratives of real or imagined events, meant to entertain, teach, preserve culture, or instill morals, often structured with a beginning, middle, and end.

Rorschach Inkblot Technique

An assessment tool where individuals' interpretations of inkblot images are analyzed to understand their psychological state.