A Company's Income Statement Showed the Following: Net Income,$124,000; Depreciation

question 70

Multiple Choice

A company's income statement showed the following: net income,$124,000; depreciation expense,$30,000; and gain on sale of plant assets,$14,000.An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities:
Accounts receivable decreased $9,400; merchandise inventory increased $18,000; prepaid expenses decreased $6,200; accounts payable increased $3,400.Calculate the net cash provided or used by operating activities.

• A)$139,000.
• B)$141,000.
• C)$145,800.
• D)$155,000.
• E)$167,000.

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Definitions:

Constant Rate

A fixed, unchanging rate at which a specific quantity grows or decays over time.

Compounded Annually

The process of earning interest on both the initial principal and the accumulated interest from previous periods, calculated once per year.

Compounded Monthly

A calculation method for interest where the interest earned is added to the principal at the end of each month, causing subsequent interest to be based on the increased balance.

Effective Annual Rate

The real interest rate on an investment or loan, considering the effects of compounding over a year.