Use the Following Information and the Indirect Method to Calculate

question 140

Multiple Choice

Use the following information and the indirect method to calculate the net cash provided or used by operating activities: $\begin{array}{|l|r|}\hline \text { Cash paid for purchase of plant assets } & \$ 15,000 \\\hline \text { Decrease in interest payable } & 2,000 \\\hline \text { Depreciation expense } & 30,000 \\\hline \text { Gain on retirement of bonds } & 32,000 \\\hline \text { Increase in accountsreceivable } & 40,000 \\\hline \text { Loss on sale of plant assets } & 5,000 \\\hline \text { Net Income } & 76,000\\\hline \end{array}$

• A)$22,000
• B)$117,000
• C)$69,000
• D)$37,000
• E)$91,000

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Definitions:

M'Naghten Rule

A legal principle establishing the insanity defense based on the inability to know right from wrong at the time of committing a crime.

Jail Diversion

An arrangement in which mentally disturbed criminal defendants are treated for their disorders on an outpatient basis. That is, they are diverted from jail to the community for mental health care.

Mental Health Care

Professional and supportive services aimed at improving and maintaining mental health and preventing mental illness.

Minor Charges

Legal accusations that are less serious compared to felony charges, often resulting in lesser penalties.