Accounts Receivable from Sales Transactions Were $51,000 at the Beginning

question 159

Multiple Choice

Accounts receivable from sales transactions were $51,000 at the beginning of the year and $64,000 at the end of the year. Net income reported on the income statement for the year was $105,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method is

• A) $105,000
• B) $118,000
• C) $92,000
• D) $169,000

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Definitions:

Marginal Revenue Product

The additional revenue generated from using one more unit of a variable resource in the production process.

Input Price

The cost associated with purchasing the raw materials or components required for production.

Marginal Product

The additional output that is produced by using one more unit of a factor, keeping all other factors constant.

Worker Productivity

The amount of goods and services that a worker produces in a given period of time.