Avatar Company Uses the Indirect Method to Prepare Its Statement

question 61

Multiple Choice

Avatar Company uses the indirect method to prepare its statement of cash flows and provides following information about transactions for the year:
• Plant assets, net-beginning balance: $90,000
• Plant assets, net-ending balance: $120,000
• Equipment costing $52,000 was purchased for cash
• Equipment with a net asset value of $10,000 was sold for $14,000
• Depreciation expense of $12,000 was recorded during the year
What was the net amount of Cash from investing activities?

• A) $38,000 negative
• B) $60,000 positive
• C) $52,000 negative
• D) $30,000 negative

Explore the impact of observational methods on psychological research and practice.

Understand the key components and goals of customer relationship management (CRM) programs.

Identify strategies for enhancing customer loyalty and profitability through CRM.

Recognize the importance of personalizing the marketing mix to retain and attract customers.

---

Definitions:

Income From Operations

Income From Operations is the profit realized from a business's operational activities, excluding any investment income or taxes.

Contribution Margin Ratio

The contribution margin ratio is a financial metric that shows what percentage of sales revenue is not consumed by variable costs and thus contributes to covering fixed costs.

Fixed Costs

Costs that remain constant regardless of a company's level of activity, including expenses like lease payments, wages, and premiums.

Break-even Point

The point at which total costs and total revenue are equal, meaning no net loss or gain, and the business has "broken even."