Mercury Corporation
Mercury Corporation Reported the Following Information on Its

question 98

Multiple Choice

Mercury Corporation
Mercury Corporation reported the following information on its financial statements:
$\begin{array}{lrr}& \text { Year 2 } & \text { Year 1 } \\\text { Accounts receivable } & \$ 150,000 & \$ 120,000 \\\text { Prepaid expenses } & 9,000 & 10,000 \\\text { Accounts payable } & 65,000 & 80,000 \\\text { Salaries payable } & 12,000 & 5,000 \\\text { Net income } & 200,000 & \\\text { Depreciation expense } & 14,000 & \\\text { Gain on sale of equipment } & 6,000 &\end{array}$
-Refer to the figure Mercury Corporation.The company uses the indirect method 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) $171,000
• B) $183,000
• C) $215,000
• D) $245,000

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Definitions:

Observational Studies

Research methods that involve assessing subjects without manipulating the environment or the participants, used to identify and describe natural occurrences.

Statistical Correlation

A measure that indicates the extent to which two or more variables fluctuate together, showing how one variable is linearly related to another.

Correlate

To have a mutual relationship or connection, where one thing affects or depends on another.

Large

Of considerable or relatively great size, extent, capacity, or quantity.