Records for Serenity Sounds Show Net Income of $30,000;depreciation Expense

question 105

Multiple Choice

Records for Serenity Sounds show net income of $30,000;depreciation expense of $10,000;and cash dividends paid of $5,000.The cash flow from operating activities on the cash flow statement using the indirect method is:

• A)$45,000.
• B)$40,000.
• C)$35,000.
• D)$25,000.

---

Definitions:

Base Period

A specific time period used as a benchmark for comparing economic or financial data, such as in calculating inflation rates or index numbers.

Prices Received

The amount of money that producers get for selling one unit of a good or service, reflecting the market value from the perspective of sellers.

Direct Subsidies

Financial assistance provided by governments to individuals, organizations, or industries, aimed at supporting or promoting certain economic activities.

Federal Government

The national government of a federated state, which holds the authority to govern at a level above individual states or provinces.