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:

Interest Rate

The percentage charged on a loan or paid on deposits over a specific period, typically expressed as an annual percentage of the principal.

Optimal Time

The most favorable or efficient time to perform an action or achieve a result, considering all constraints and variables.

Market Value

The current price at which an asset or service can be bought or sold in the marketplace.

Interest Rate

The percentage of an amount of money charged for its use per some period of time, often expressed as an annual percentage rate.