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:

Time Consuming

Activities or tasks that require a considerable or excessive amount of time to complete.

Situation Analysis

An evaluation process that identifies an organization's internal strengths and weaknesses, along with external opportunities and threats.

Strategic Plan

A systematic process for envisioning a desired future, and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.

Current Situation

A phrase referring to the present state or conditions of an event, issue, or circumstance.