Avatar Company Uses the Indirect Method to Prepare Its Statement

question 98

Multiple Choice

Avatar Company uses the indirect method to prepare its statement of cash flows. Refer to the following information for the year 2015: Net cash provided by operating activities: $102,000
Net cash used in investing activities: $(113,500)
Net cash provided by financing activities: $15,000
If the cash balance at the beginning of the year was $13,000, what would be the ending cash balance?

• A)$16,500
• B)$3,500
• C)$13,000
• D)$10,500

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Definitions:

Hypnagogic

Relating to the transitional state immediately before falling asleep, characterized by vivid sensory phenomena.

REM Rebound

The phenomenon of increased REM sleep experienced after a period of REM sleep deprivation.

REM Sleep

A stage of sleep characterized by rapid eye movements, more dreaming, and bodily movement, and faster pulse and breathing.

REM Sleep Deprivation

The lack of REM (Rapid Eye Movement) sleep, a stage of sleep characterized by vivid dreams, which can lead to cognitive impairments and mood disturbances.