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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Interpreter

A person who converts spoken or sign language communication from one language to another, facilitating understanding between speakers of different languages.

Hemisphere

Half of a spherical or roughly spherical body, especially one of the two halves of the earth, divided into the Northern and Southern Hemispheres.

Neurons

Specialized cells that transmit nerve impulses; the basic building blocks of the nervous system.

Dendrites

Branch-like extensions of neurons that receive signals from other neurons.