Avatar Company Uses the Indirect Method to Prepare Its Statement

question 123

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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How much was the net change in cash during the year?

• A) $3,000 negative
• B) $79,000 positive
• C) $3,000 positive
• D) $61,000 negative

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Definitions:

Isotonic

A solution having the same osmotic pressure as some other solution, typically that of a cell or body fluid, which prevents net movement of water across membranes.

Net Movement

The overall transfer or migration of substances or particles from one location to another, often described in terms of direction and magnitude.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance that is the main constituent of Earth's hydrosphere and the fluids of all known living organisms.

Plasmolysis

The process in which plant cells lose water in a hypertonic solution, causing the cell membrane to detach from the cell wall.