The Records of WXY Provided the Following Information for the Year

question 117

Multiple Choice

The records of WXY provided the following information for the year ended December 31, 2011:
(1) Purchased a warehouse and paid for it by issuing 1,000 common shares; market value was $35 per share.
(2) Inventory increased by $4,000.
(3) Accounts payable decreased by $6,000.
(4) Declared a cash dividend, $5,000.
(5) Depreciation expense, $2,000.
(6) Net income, $19,000.
(7) Loss on sale of machine, $3,000.
(8) On December 31, 2011, paid insurance premium on all assets, for 2012 and 2013, $800. There was no prepaid insurance on January 1, 2011.
What was the net cash inflow from operating activities for 2011?

• A) $7,200
• B) $13,200
• C) $16,200
• D) $21,200

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Definitions:

Food Deprivation

The condition of being prevented from accessing sufficient nutrients and calories needed for health and well-being.

External Locus

A belief that control over one's life events and outcomes resides primarily with external forces or circumstances.

Julian Rotter

A psychologist known for his work in social learning theory and the development of the concept of locus of control.

Locus of Control

A psychological concept that refers to people's beliefs about the extent of control they have over events in their lives.