The Following Data Is Provided for Last Year

question 26

Multiple Choice

The following data is provided for last year. Net income was $30,000. Current assets (other than cash) increased by $12,000 and current liabilities increased by $8,000. Under the indirect method, the cash flows from operating activities would be:

• A)$34,000.
• B)$10,000.
• C)$30,000.
• D)$26,000.

---

Definitions:

Invention

The creation of a new product, process, or method that has not previously existed.

Creative Destruction

The process through which new innovations lead to the demise of older technologies, promoting progress and economic growth.

Diffusion

The process by which an innovation is communicated through certain channels over time among the members of a social system.

R&D

Short for Research and Development, involving investigative activities a business conducts to improve existing products and procedures or to lead to the development of new products and procedures.