Company N
Company N Reported the Following Information -Refer to the Figure Company N

question 155

Multiple Choice

Company N
Company N reported the following information:
$\begin{array}{lrr}& \underline{\text { Year 2 }} & \text { Year 1 } \\text { Accounts receivable } & \$ 50,000 & \$ 65,000 \\\text { Inventories } & 43,000 & 40,000 \\\text { Accounts payable } & 29,000 & 39,000 \\\text { Net income } & 100,000 & \\\text { Depreciation expense } & 11,000 &\end{array}$
-Refer to the figure Company N.The indirect method is used to prepare the operating activities section of the statement of cash flows.What amount will be reported as net cash inflow from operating activities for Year 2?

• A) $92,000
• B) $109,000
• C) $111,000
• D) $113,000

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Definitions:

Perfect Competitor

A theoretical market structure where many firms sell identical products, no single firm can influence the market price, and all possess perfect market information.

Average Costs

The total cost of production divided by the number of goods produced, often used to assess cost efficiency.

Government Franchises

Government franchises are rights or licenses granted by the government to entities, allowing them to operate specific services or activities under regulation.

Perfect Knowledge

A theoretical concept where all consumers and producers have complete and instantaneous information about all aspects of the market.