The Following Selected Information Is for Barble Gardening Center At,and

question 9

Multiple Choice

The following selected information is for Barble Gardening Center at,and for the year ended,December 31,2012,and 2011: $\begin{array} { l l l } \text { Selected Ealance Sheet Accounts } & \underline { 12 / 31 / 12 } & \underline { 12 / 31 / 11 } \\\text { Fixed Assets } & \$ 188,000 & \$ 158,000 \\\text { Inventory } & 52,000 & 60,000 \\\text { Prepaid Expense } & 14,000 & 10,000 \\\text { Retained Earnings } & 46,000 & 38,000 \\\text { Accounts Payable } & 38,000 & 25,000 \\\text { Accounts Receivable } & 58,000 & 44,000 \\\text { Accumulated Depreciation } & 86,000 & 70,000 \\\text { Cash } & 38,000 & 28,000 \\\text { Wages Payable } & 4,000 & 14,000\end{array}$
$\text{Selected Income Statement Accounts}$
$\begin{array}{lc}\text { Depreciation Expense } & \$ 28,000 \\\text { Gain on Sale of Fixed Asset } & 6,000 \\\text { Net Income } & 43,000 \\\text { Sales } & 182,000 \\\text { Wages Expense } & 68,000\end{array}$
Using the indirect method,what is the net cash flow from operations for Barble Gardening Center for the year ended December 31,2012?

• A)$63,000
• B)$57,000
• C)$83,000
• D)$58,000
• E)$87,000

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Definitions:

Present Value

The present value of a future sum of money or series of cash flows, discounted at a certain rate of return.

Expected Costs

The anticipated expenses associated with the production of goods or services or the undertaking of an activity, based on historical data, trends, and analysis.

Economic Profit

The contrast between earnings from outputs sold and the opportunity cost of using specific inputs.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the outstanding loan.