Walker Company Reports Net Income of $420,000 for the Year

question 69

Multiple Choice

Walker Company reports net income of $420,000 for the year ended December 31,2013.It also reports $75,600 depreciation expense and a gain of $11,000 on the sale of machinery.Its comparative balance sheets reveal a $33,600 decrease in accounts receivable,$17,220 increase in accounts payable,$9,240 increase in prepaid expenses,and $13,020 increase in wages payable.What is the net cash flows provided (used) by operating activities using the indirect method?

• A)($539,200)
• B)$300,800
• C)$561,200
• D)($300,800)
• E)$539,200

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Definitions:

Sella Turcica

A saddle-shaped depression in the sphenoid bone at the base of the human skull, holding the pituitary gland.

Cribriform Plate

A sievelike structure within the skull that provides a passageway for olfactory nerves from the nasal cavity to the brain.

Optic Canal

A narrow passageway in the skull through which the optic nerve runs from the eye to the brain.