The Following Data Is Provided for Last Year

question 77

Multiple Choice

The following data is provided for last year. Net income was $210,000. Current receivables and prepaid expenses increased by $10,000 and $2,000, respectively. Current payables decreased by $8,000. Under the indirect method, the cash flows from operating activities would be:

• A)$190,000.
• B)$206,000.
• C)$230,000.
• D)$214,000.

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Definitions:

Seasoned Offering

Refers to the issuance of additional securities by a company that has previously issued securities to the public and is therefore considered a more established issuer.

Stock Price

The going rate for buying or selling a single share of a firm's stock in the marketplace.

News Release

An official statement issued to the media and the public to announce significant or notable information about a company, government, or organization.

Holder-of-record Date

The specified date set by a corporation by which one must be registered as a shareholder to be entitled to receive dividends or participate in certain corporate events.