Alvez Company Reports Net Income of $305,000 for the Year

question 81

Multiple Choice

Alvez Company reports net income of $305,000 for the year ended December 31.It also reports $93,700 depreciation expense and a $10,000 loss on the sale of equipment.Its comparative balance sheet reveals a $40,200 increase in accounts receivable,a $10,200 decrease in prepaid expenses,a $15,200 increase in accounts payable,a $12,500 decrease in wages payable,and a $100,000 decrease in notes payable.Calculate the cash provided (used) in operating activities using the indirect method.

• A)$461,800.
• B)$371,400.
• C)$381,400.
• D)$351,000.
• E)$361,000.

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Definitions:

Mental Set

A tendency to approach situations in a certain way because that method has worked in the past, potentially hindering the ability to see alternative solutions.

Squeaky Stair

A common household issue where one or more steps produce a squeaking noise when pressure is applied, typically due to loose components or friction.

Law of Small Numbers

A cognitive bias leading to the erroneous belief that small samples accurately represent an entire population.

Gambler's Fallacy

The mistaken belief that if something happens more frequently than normal during a given period, it will happen less frequently in the future, or vice versa.