A Firm Reported $400,000 in Net Income in 2007

question 38

Multiple Choice

A firm reported $400,000 in net income in 2007. The firm invested $50,000 in equipment during the year and reported a depreciation expense of $21,000. Its account receivable
Decreased by $10,000; its inventory increased by $8,000; its accounts payable increased by
$3,000; and its taxes payable decreased by $2,000. Calculate the firm's operating cash flow.
(Assume no other transactions affected the firm's 2007 cash flow.)

• A)$330,000
• B)$368,000
• C)$374,000
• D)None of the above is correct.

Calculate and analyze net working capital changes over a period.

Determine the total tax paid by individuals based on interest income and dividends combining provincial tax rates.

Calculate operating cash flow and cash flow to creditors and stockholders.

Compute depreciation expense under various scenarios including the Capital Cost Allowance (CCA) system.

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Definitions:

Coping Strategies

Techniques or methods employed to manage stressful situations, emotional distress, or psychological challenges.

Health Club

A facility with exercise equipment and often offering health and wellness services, classes, and programs aimed at improving physical fitness.

Family Support

Assistance and encouragement provided by family members to one another, which can be emotional, financial, or physical.

Somatic Symptom Disorders

A category of mental disorders characterized by excessive thoughts, feelings, or behaviors related to physical symptoms, leading to significant distress or impairment.