Wessen Company Reports Net Income of $200,000 for the Year

question 42

Multiple Choice

Wessen Company reports net income of $200,000 for the year ended December 31,2013.It also reports $40,000 depreciation expense,$22,500 amortization expense,and a $15,000 loss on the sale of machinery.Its comparative balance sheets reveal a $225,700 increase in accounts receivable,$31,600 decrease in accounts payable,$15,000 decrease in prepaid expenses,and $48,100 decrease in wages payable.What net cash flows are provided (used) by operating activities using the indirect method?

• A)($12,900)
• B)$57,900
• C)$50,400
• D)($57,900)
• E)($50,400)

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Definitions:

Nonprofit

Organizations that operate without the primary goal of financial profit, focusing instead on philanthropic, social, educational, or other community-focused missions.

Ethical Decision-making Approaches

Methods and considerations used to make choices that reflect moral principles and values in personal actions or organizational policies.

Utilitarian Approach

Action that results in the greater good for the majority of people.

Corporate Social Responsibility

A strategy in business that promotes sustainable growth through the provision of economic, social, and environmental advantages for every stakeholder involved.