Alvez Company Reports Net Income of $305,000 for the Year

question 64

Multiple Choice

Alvez Company reports net income of $305,000 for the year ended December 31. It also reports $93,700 depreciation expense and a $10,000 loss on the sale of equipment. Its comparative balance sheet reveals a $40,200 increase in accounts receivable, a $10,200 decrease in prepaid expenses, a
$15,200 increase in accounts payable, a $12,500 decrease in wages payable, and a $100,000 decrease in notes payable. Calculate the cash provided (used) in operating activities using the indirect method.

• A) $361,000.
• B) $371,400.
• C) $461,800.
• D) $351,000.
• E) $381,400.

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Definitions:

Corporate Venture Capitalists

Investors affiliated with a corporation that provides capital to startup companies with potential for high growth, often in exchange for equity and with strategic interests in mind.

Risk-Averse

A characteristic of preferring to avoid risk, opting for safer, more certain outcomes over potentially higher yet uncertain returns.

Promising Young Companies

Emerging businesses that show potential for significant growth and success in their industry.

Mezzanine Financing

A hybrid form of capital typically used in late-stage financing composed of debt and equity, ranking between senior debt and equity in terms of claim on assets.