Changes in the Balance Sheet Accounts at June 30, 2014

question 10

Multiple Choice

Changes in the balance sheet accounts at June 30, 2014 and 2015 for the Poker Company are presented below:
$\begin{array}{lr}\text { Assets } & \begin{array}{r}\text { Increase } \\\text { (Decrease }\end{array} \\\text { Cash } & \$ 80,000 \\\text { Accounts receivable } & 200,000 \\\text { Lnventory } & 300,000 \\\text { Long-term investments } & 200,000 \\\text { Equipment } & (200,000 \\\text { Accumulated depreciation } & (60,000) \\\\\text { Liabilities and Stockholders' Equity }\\\text {Accounts payable }&\$(40,000) \\\text {Dividends payable}&400,000\\\text {Notes payable-Current }&(200,000) \\\text {Notes payable-Long-term }&400,000\\\text {Common stock, \( \$ 1.00 \) par }&300,000\\\text {Additional paid-in capital }&100,000\\\text {Retained eamings }&80,000\\\end{array}$
Additional Information for 2015:
Net income was $480,000 and dividends of $400,000 were declared.
Common stock was issued for cash.
A Long-term investment was sold for $160,000.
A new Long-term investment was acquired for $360,000.
Equipment that cost $600,000 was sold for $200,000. The book value of those assets was $150,000.
-The net cash flow from operating activities for 2015 is a

• A)$200,000 outflow.
• B)$280,000 inflow.
• C)$280,000 outflow.
• D)$400,000 inflow.

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Definitions:

Water-Soluble Hormones

Hormones that are soluble in water, allowing them to circulate freely in the blood and interact with specific receptors.

Plasma Membrane

The bilayer of lipids surrounding the cell's cytoplasm, which controls the passage of elements into and out of the cell.

Chronic Hormone Secretion

The continuous or prolonged release of hormones into the bloodstream, affecting the body's functions over an extended period.

Down-Regulation

A biological process where the number of receptors or the sensitivity of a cell to a molecule decreases in response to an external factor.