Examlex

Solved

Scranton,Inc

question 153

Multiple Choice

Scranton,Inc.reports net income of $230,000 for the year ended December 31.It also reports $87,700 depreciation expense and a $5,000 gain on the sale of equipment.Its comparative balance sheet reveals a $35,500 decrease in accounts receivable,a $15,750 increase in accounts payable,and a $12,500 decrease in wages payable.Calculate the cash provided (used) in operating activities using the indirect method.


Definitions:

Cash Flows

The sum of funds flowing in and out of a company, impacting its ability to cover short-term obligations.

Initial Cost

The total of all expenses incurred to acquire an asset or investment, including purchase price and all related fees.

Average Accounting Rate of Return

A financial ratio that measures the expected return on an investment based on its net income and initial cost.

Straight-Line Depreciation

An arrangement for allocating the cost of a tangible asset over its duration of usefulness in identical annual segments.

Related Questions