Consider the Following Information The Company Would Report a Net Cash Inflow from Operating

question 84

Multiple Choice

Consider the following information: $$\begin{array} { | l | r | } \hline \text { Net income } & \mathbf { 2 0 } , 000 \\\hline \text { Depreciation } & \mathbf { 3 } , 000 \\\hline \text { Increase (decrease) in accounts receivable } & 1,000 \\\hline \text { Increase (decrease) in prepaid rent } & ( 400 ) \\\hline \text { Increase (decrease) in accrued Liabilities } & 900 \\\hline \text { Cash paid to purchase office equipment } & 4,000 \\\hline\end{array}$$ The company would report a net cash inflow from operating activities of:

• A)$17,500.
• B)$18,500.
• C)$21,500.
• D)$23,300.

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Definitions:

Horizontal Analysis

A financial analysis technique that evaluates the changes in the amounts of financial statement items over a period.

Sales

The total amount of goods or services sold by a company during a specific period of time, indicating the company's primary revenue generation activity.

Horizontal Analysis

A financial tool used for comparing financial statements over two or more periods, focusing on the growth, decline, or consistency across those periods.

Income Statement

A financial statement that shows the revenues, expenses, and profits or losses of a company over a specific period of time.