Trenton Reports Net Income of $230,000 for the Year Ended

question 111

Multiple Choice

Trenton reports net income of $230,000 for the year ended December 31,Year 2.It also reports $87,700 depreciation expense and a $5,000 gain on the sale of equipment.Its comparative balance sheet reveals a $35,500 decrease in accounts receivable,a $15,750 increase in accounts payable,and a $12,500 decrease in wages payable.Calculate the new cash provided (used) in operating activities using the indirect method.

• A)$376,450.
• B)$351,450.
• C)$356,450.
• D)$319,950.
• E)$263,750.

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Definitions:

Income Taxes Payable

The amount of income taxes a company or individual owes to the government, which has not yet been paid.

Statement Of Cash Flows

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents.

Cash Dividends

Payments made by a corporation to its shareholder members as a distribution of profits.

Net Cash

The total amount of cash and cash equivalents a company possesses after subtracting all its cash outflows from its cash inflows.