Michael's Industries Reported Net Income of $10,000 and Paid Cash

question 90

Multiple Choice

Michael's Industries reported net income of $10,000 and paid cash dividends of $2,000.Changes in balanced sheet accounts for the year were as follows:
Based on the above information,what is the amount of net cash provided by operations?

• A) $1,000
• B) $14,000
• C) $19,000
• D) $30,000

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Definitions:

Total Cost

The entirety of expenses incurred during the production process of goods or services, which includes both fixed and variable costs.

Total Variable Cost

The sum of all variable costs (costs that change with the level of output) involved in producing a particular quantity of output.

Average Variable Costs

The total variable costs (costs that change with the level of output) of production divided by the quantity of output produced.

Best Combination

The optimal mix of goods or strategies that maximizes satisfaction or utility given constraints like budget or resources.