A Company Has a Net Income of $70,000 and Depreciation

question 64

Multiple Choice

A company has a net income of $70,000 and depreciation expenses of $20,000.During the year,its accounts payable balance decreased by $15,000.What is the net cash flow from operating activities using the indirect method for preparing the statement of cash flows?

• A)$90,000
• B)$105,000
• C)$50,000
• D)$75,000

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Definitions:

Atrioventricular Node

A part of the cardiac conduction system that controls the heart rate by delaying the transmission of electrical impulses from the atria to the ventricles.

Bundle of His

A collection of heart muscle cells specialized for electrical conduction that transmits the electrical impulses from the AV node to the ventricles of the heart.

Telangiectasis

The dilation of small or terminal blood vessels, causing spider-like or threadlike red lines or patterns on the skin or mucous membranes.

-Ectasis

A suffix indicating dilation or expansion of a hollow organ or vessel.