Avatar Company Uses the Indirect Method to Prepare Its Statement

question 153

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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Which of the following statements is TRUE?

• A) The statement of cash flows will show an ending cash balance of $3,000.
• B) The statement of cash flows will show total net cash flows of $70,000 positive.
• C) The statement of cash flows will show total net cash flows of $3,000 negative.
• D) The statement of cash flows will show total net cash flows of $3,000 positive.

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Definitions:

Fear

A negative feeling resulting from the assumption that a person or object poses a risk, potential harm, or is menacing.

Joy

A feeling of great pleasure and happiness.

Frontal Lobe

The part of the brain located at the front of each cerebral hemisphere, responsible for executive functions, decision making, movement, and speech.

Positive

Characterized by or displaying an optimistic, constructive, or affirmative nature or outcome.