Shippers Ltd Made a Net Operating Loss of $42 000

question 23

Multiple Choice

Shippers Ltd made a net operating loss of $42 000.Depreciation expense was $80 000 and loss on sale of vessels was $170 000.Accounts receivable increased by $65 000 and inventory decreased by $18 000.Accounts payable increased by $160 000 and expenses payable decreased by $1000.What was the cash flow from operations?

• A) $404 000
• B) $320 000
• C) ($20 000)
• D) none of the above.

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Definitions:

Future Sum

The amount of money or value to be received or paid at a specified date in the future.

Interest Rate

The fee, represented as a fraction of the initial sum, that a creditor levies on a debtor for asset utilization.

Interest Rates

A borrower pays this rate, calculated as a percentage of the principle, to a lender in exchange for the use of assets.

Investments

Assets or commodities acquired with the intention of generating income or appreciating in value over time.