The Most Recent Balance Sheet and Income Statement of Penaloza

question 89

Multiple Choice

The most recent balance sheet and income statement of Penaloza Corporation appear below:
The company paid a cash dividend of $18. It did not dispose of any property, plant, and equipment. The company did not retire any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.
-The net cash provided by (used in) operating activities for the year was:

• A) $117
• B) $45
• C) $36
• D) $116

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Definitions:

Credit Sales

Transactions where goods or services are provided to a customer with an agreement to pay at a later date.

Operating Expenses

Expenses related to the normal operations of a business, excluding the cost of goods sold.

Direct Labour Budget

A budget that forecasts the expense of direct labor needed to achieve manufacturing targets.

Labour Rate

The standard or actual cost paid per hour of labor, used in calculating the total cost of production or services.