Use the Following Information and the Indirect Method to Calculate

question 153

Multiple Choice

Use the following information and the indirect method to calculate the net cash provided or used by operating activities:
$$\begin{array} { | l | r | } \hline \text { Net income } & \$ 85,300 \\\hline \text { Depreciation expense } & 12,000 \\\hline & \\\hline \text { Gain on sale of land } &7,500 \\\hline \text { Increase in merchandise inventory } & 2,050 \\\hline \text { Increase in accounts payable } & 6,150\\\hline\end{array}$$

• A) $69,900.
• B) $108,900.
• C) $93,900.
• D) $85,700.
• E) $81,600.

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Definitions:

Marginal Product

Represents the additional output that can be produced by adding one more unit of a specific input, keeping other inputs constant.

Productivity

A measure of the efficiency of production, often quantified as the ratio of outputs (goods and services) produced per input used (such as labor, materials, and capital).

Resource

An economic or productive factor required to accomplish an activity, often considered in terms of time, labor, capital, and materials.

Complementary Resource

refers to inputs or goods that are used together with another resource or good to produce a product or service.