Krech Corporation's Comparative Balance Sheet Appears Below

question 51

Multiple Choice

Krech Corporation's comparative balance sheet appears below:
The company's net income (loss) for the year was ($3,000) and its cash dividends were $3,000. It did not sell or retire any property, plant, and equipment during the year. The company uses the indirect method to determine the net cash provided by operating activities.
-The company's net cash provided by (used in) operating activities is:

• A) $29,000
• B) $19,000
• C) $27,000
• D) $21,000

---

Definitions:

Contribution Margin

The amount of revenue remaining after subtracting variable costs, contributing towards covering fixed costs and generating profit.

Motor Division

A specialized business unit within a larger company focused on the production and sale of motor vehicles or related components.

Automotive Division

A specialized branch within a company focused on the development, manufacturing, and/or sale of vehicles and related automotive products.

Transfer Price

The price charged for goods or services sold between divisions, subsidiaries, or companies under the same control.