The Net Income Reported on the Income Statement for the Current

question 115

Multiple Choice

The net income reported on the income statement for the current year was $250,000.Depreciation recorded on fixed assets and amortization of patents for the year were $40,000 and $9,000,respectively.Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: $\begin{array}{l}\begin{array}{lll}\\\text { Cash}\\\text { Accounts receivable}\\\text { Inventories}\\\text { Prepaid expenses}\\\text { Accounts payable merchandise creditors}\\\end{array}\begin{array}{lll}\underline { \text { End}}\\\$ 50,000 \\112,000 \\105,000 \\4,500 \\75,000\end{array}\begin{array}{lll}\underline { \text { Beginning}}\\\$ 60,000 \\108,000 \\93,000 \\6,500 \\89,000\end{array}\end{array}$
What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?

• A)$271,000
• B)$279,000
• C)$327,000
• D)$256,000

Understand the concept of equilibrium in the labor market and the factors that can shift demand and supply.

Apply the concept of marginal productivity to determine the optimal number of workers to hire for maximizing profits.

Associate changes in the demand and supply of labor with changes in the equilibrium wage and quantity of labor.

Calculate the value of the marginal product of labor and understand its role in employment decisions.

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Definitions:

GDP

The Gross Domestic Product, or GDP, is a metric that captures the entire value of goods and services generated within a country over a set period, serving as a gauge of its economic performance.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of all goods and services produced by an economy in a specific period, using constant prices.

Inflation

A comprehensive increase in the cost of goods and services and a depreciation in money's worth.

Home-grown Tomatoes

Tomatoes that are cultivated in personal gardens or small-scale farms, typically for personal consumption rather than commercial sale.