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

question 26

Multiple Choice

Alvez 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, a $75,000 increase in equipment, and a $100,000 decrease in notes payable. Calculate the net increase in cash for the year.

• A) $281,400.
• B) $381,400.
• C) $206,400.
• D) $406,400.
• E) $216,400.

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Definitions:

Democratic Socialist Government

A political system where socialism and democracy coexist, aiming to distribute wealth and resources more equitably while maintaining democratic freedoms.

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Emergency financial support provided by governments or institutions to prevent the failure of economically important entities.

GM Canada

General Motors Canada Company, a subsidiary of the American multinational corporation General Motors (GM), responsible for the marketing, sales, and manufacture of GM vehicles in Canada.