The Following Selected Information Is for Porter Handbags At,and for the Year

question 74

Multiple Choice

The following selected information is for Porter Handbags at,and for the year ended,December 31,2012,and 2011: $\begin{array} { l l l } \text { Selected Ealance Sheet Accounts } & \underline { 12 / 31 / 12 } & \underline { 12 / 31 / 11 } \\\text { Accounts Payable } & \$ 19,000 & \$ 13,000 \\\text { Inventory } & 26,000 & 30,000 \\\text { Prepaid Expense } & 7,000 & 5,000 \\\text { Retained Earnings } & 23,000 & 19,000 \\\text { Wages Payable } & 2,000 & 7,000 \\\text { Accounts Receivable } & 29,000 & 22,000 \\\text { Accumulated Depreciation } & 43,000 & 35,000 \\\text { Cash } & 19,000 & 14,000 \\\text { Fixed Assets } & 94,000 & 79,000\end{array}$
$\text{Selected Income Statement Accounts}$
$\begin{array} { l l } \text { Oepreciation Expense } & \$ 14,000 \\\text { Gain on Sale of Fixed Asset } & 3,000 \\\text { Net Income } & 23,000 \\\text { Sales } & 91,000 \\\text { Wages Expense } & 34,000\end{array}$
Using the indirect method,what is the net cash flow from operations for Porter Handbags for the year ended December 31,2012?

• A)$30,000
• B)$33,000
• C)$36,000
• D)$43,000
• E)$44,000

---

Definitions:

Higher Management

Refers to the highest level of management personnel in an organization who are responsible for making strategic decisions and overseeing the entire organization's operations.

Leadership Situation

The context or environment in which leadership is exercised, influencing the leader's behavior and effectiveness.

Screen-Printing Business

A company that specializes in transferring designs onto surfaces like textiles or posters using a mesh screen and ink.

Outdoor Adventure Company

A business that offers guided experiences and activities in natural settings, such as hiking, kayaking, rock climbing, or camping, focusing on exploration and adventure.