The Following Information Has Been Provided to You by Watts

question 75

Multiple Choice

The following information has been provided to you by Watts Corporation: $$\begin{array} { l r l } \text { Net income } & \$ 175,300 \\\text { Increase in accounts payable } & \$ 18,500 \\\text { Increase in inventory } & \$ 17,500 \\\text { Increase in accounts receivable } & \$ 7,700 \\\text { Increase in bonds payable } & \$ 75,000 \\\text { Amortization of bond premium } & \$ 5,400 \\\text { Depreciation expense } & \$ 21,300 \\\text { Decrease in income taxes payable } & \$ 7,300\end{array}$$
What is Watts Corporation's net cash flow from operating activities?

• A)$186,000
• B)$175,200
• C)$138,200
• D)$210,200

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Definitions:

Binomial Experiment

A statistical experiment that satisfies four conditions: a fixed number of trials, only two possible outcomes, independence of trials, and a constant probability of success.

Independent Trials

Experiments or trials in which the outcome of one trial does not affect the outcome of any other trials.

Binomial Experiment

A statistical experiment that has two possible outcomes for each trial and a fixed number of trials, where each trial is independent of the others.

Probability

A numerical expression of an event's probability, with the scale going from 0, symbolizing that the event cannot occur, to 1, signifying guaranteed occurrence.