A Company Had Net Income of $252,000

question 176

Multiple Choice

A company had net income of $252,000. Depreciation expense is $26,000. During the year, accounts receivable and inventory increased by $15,000 and $40,000, respectively. Prepaid expenses and accounts payable decreased by $2,000 and $4,000, respectively. There was also a loss on the sale of equipment of $3,000. How much was the net cash flow from operating activities on the statement of cash flows using the indirect method?

• A) $217,000
• B) $224,000
• C) $284,000
• D) $305,000

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Definitions:

Combination Of Salary

The total compensation package for an employee, combining base salary with additional benefits or bonuses.

Commission

A form of payment to an agent or employee based on a percentage of the sales they generate or on completing a particular transaction.

Motivation

The intrinsic and extrinsic factors that drive an individual's behavior and actions toward achieving certain goals.

Salesperson's Position

The role or job title of an individual responsible for selling products or services to customers, often involving negotiation, presentation, and relationship management.