The Net Income Reported on the Income Statement for the Current

question 28

Multiple Choice

The net income reported on the income statement for the current year was $635,000.Depreciation recorded on plant assets was $29,000.Accounts receivable and inventories increased by $1,200 and $3,600, respectively.Prepaid expenses and accounts payable decreased by $800 and $16,000 respectively.How much cash was provided by operating activities?

• A) $642,400
• B) $644,000
• C) $652,000
• D) $685,600

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Definitions:

Milling Machine Minutes

A measure of manufacturing time that represents the total minutes a milling machine is engaged in production.

Monthly Demand

The total quantity of a product or service that consumers are willing and able to purchase in a month.

Selling Price

The amount a buyer pays to purchase a product, determined by cost, market demand, and competition.

Direct Materials

Raw materials that are directly traced and integral to the finished product.