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:

Abnormal Cells

Cells that have undergone changes in structure, function, or behavior, often indicative of diseases like cancer.

Leukocytes

White blood cells (derived from the Greek words leukos, meaning “white,” and kytos, literally meaning “a hollow” but used to refer to cells).

Erythrocytes

Erythrocytes are red blood cells responsible for carrying oxygen from the lungs to the body tissues and carbon dioxide as a waste product, away from the tissues and back to the lungs.

General Adaptation Syndrome

A framework that outlines how the body responds to stress over both immediate and extended periods, identified by three phases: alarm, resistance, and exhaustion.