Avatar Company Uses the Indirect Method to Prepare the Statement

question 1

Multiple Choice

Avatar Company uses the indirect method to prepare the statement of cash flows. Please refer to the following income statement: Other information provided:
How much is the Net cash flow provided by operations?

• A)$20,000 positive
• B)$75,000 positive
• C)$32,000 positive
• D)$82,000 positive

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Definitions:

Lessee

A person or entity that rents or leases property from another, known as the lessor, under the terms of a lease agreement.

Lessor

The party that leases or rents out a property or asset to another party, known as the lessee.

Contractual Agreement

A legally binding contract between two or more parties outlining terms and conditions of an agreement.

Par Value

The nominal value of a bond or stock as stated by the issuer, unrelated to its market value.