In Preparing a Company's Statement of Cash Flows for the Most

question 159

Multiple Choice

In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available: 1.
$$\begin{array} { | l | r | } \hline \text { Net income for the year was } & \$ 52,000 \\\hline \text { Accounts payable decreased by } & \$ 18,000 \\\hline \text { Accounts receivable increased by } & \$ 25,000 \\\hline \text { Inventories increased by } & \$ 5,000 \\\hline \text { Cash dividends paid were } & \$ 14,000 \\\hline \text { Depreciation expensewas } & \$ 20,000\\\hline\end{array}$$ Net cash provided by operating activities was:

• A) $120,000.
• B) $71,000.
• C) $70,000.
• D) $24,000.
• E) $110,000

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Definitions:

Chromosomes

Threadlike structures located in the nucleus of cells, made of DNA and proteins, and carry genetic information.

Sperm

Sperm are male reproductive cells or gametes in sexually reproducing organisms that carry genetic information to the ovum.

Body Cells

Cells that make up the tissues and organs of an organism, excluding reproductive cells.

Chromosomes

Structures within cells that contain genetic information in the form of DNA, organized with proteins to form genes.