In Preparing a Company's Statement of Cash Flows for the Most

question 220

Short Answer

In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available:
1.
$\begin{array}{ll}\text { Net income for the year was } & \$ 52,000 \\\hline \text { Accounts payable decreased by } & \$ 18,000 \\\hline \text { Accounts receivable increased by } & \$ 25,000 \\\hline \text { Inventories increased by } & \$ 5,000 \\\hline \text { Cash dividends paid were } & \$ 14,000 \\\hline \text { Depreciation expense was } & \$ 20,000\end{array}$

Net cash provided by operating activites was:
A) $\$ 120,000$ .
B) $\$ 70,000$ .
C) $\$ 110,000$
D) $\$ 24,000$ .
E) $\$ 71,000$

• A) \(\$ 120,000\).
• B) \(\$ 70,000\).
• C) \(\$ 110,000\)
• D) \(\$ 24,000\).
• E) \(\$ 71,000\)

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Definitions:

KCl

Potassium chloride, a chemical compound used as a medication to treat and prevent low blood potassium.

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A type of hyperventilation characterized by deep and labored breathing, often associated with diabetic ketoacidosis.

Metabolic Acidosis

A condition where the body produces excessive quantities of acid or when the kidneys are not removing enough acid from the body, leading to decreased pH levels.

Lactated Ringer's

An isotonic solution commonly used for fluid and electrolyte replenishment in medical patients.