Avatar Company Uses the Indirect Method to Prepare Its Statement

question 132

Multiple Choice

Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the following information for the year 2014.
$\begin{array}{llr} \text {- Net cash flows from operating activities: } & \text { \( \$ 32,000 \) positive}\\ \text { - Net cash flows from operating activities: } & \text { \( \$ 38,000 \) negative}\\ \text {- Net cash flows from financing activities: } & \text { \( \$ 9,000 \) positive} \end{array}$

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If the beginning cash balance is $18,000, what would the ending cash balance be?

• A) $21,000
• B) $18,000
• C) $3,000
• D) $15,000

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Definitions:

Analyzing Options

The process of evaluating a set of strategies or choices to determine the most advantageous course of action.