Avatar Auto Parts Company Uses the Indirect Method to Prepare

question 11

Multiple Choice

Avatar Auto Parts Company uses the indirect method to prepare its statement of cash flows.Refer to the following information for the year 2015: Net cash provided by operating activities: $102,000
Net cash used in investing activities: $(113,500)
Net cash provided by financing activities: $15,000
If the cash balance at the beginning of the year was $13,000,what would be the ending cash balance?

• A)$16,500
• B)$3,500
• C)$13,000
• D)$10,500

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Definitions:

Merchandise Inventory

Merchandise inventory refers to the products a company has available for sale to customers at any given time.

Note Payable

A written promise to pay a specific sum of money to a party on demand or at a predetermined future date.

Account Payable

The amount of money owed by a business to its suppliers or creditors for goods and services purchased on credit.

Notes Payable

Liabilities represented by written promises to pay specific sums of money at future dates, typically evidenced by formal instruments of credit.