Calculate Cash from Operating Activities Using the Following Information: Profit

question 35

Multiple Choice

Calculate cash from operating activities using the following information: Profit $148,000.
Depreciation $40,000.
Inventory increased by $10,000.

• A)$148,000.
• B)$178,000.
• C)$188,000.
• D)$98,000.

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Definitions:

Operating Expenses

Expenses that a business incurs through its normal business operations, such as sales and marketing, research, and development costs.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the corporation's goal of wealth maximization.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in a uniform manner.

Capital Budgeting

A procedure for examining and picking long-term investment opportunities that match the goal of wealth maximization for the firm.