Wessen Company Reports Net Income of $180,000 for the Year

question 25

Multiple Choice

Wessen Company reports net income of $180,000 for the year ended December 31,2013.It also reports $45,800 depreciation expense,$21,410 amortization expense,and a $15,000 gain on the sale of machinery.Its comparative balance sheets reveal a $28,300 increase in accounts receivable,$20,400 decrease in accounts payable,$10,470 increase in prepaid expenses,and $33,140 decrease in wages payable.What net cash flows are provided (used) by operating activities using the indirect method?

• A)($140,200)
• B)$133,490
• C)$139,900
• D)($133,490)
• E)$78,300

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Definitions:

Production Technique

A method or process used in the creation of goods or services, often involving tools, machinery, and technology.

In Season

Refers to the time of year when certain goods, particularly agricultural products, are readily available and at their peak quality.