The Net Income Reported on the Income Statement for the Current

question 32

Multiple Choice

The net income reported on the income statement for the current year was $275,000. Depreciation recorded on fixed assets and amortization of patents for the year were $40,000 and $9,000, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: $\begin{array}{lrr} & \text { End } & \text { Beginning } \\\text { Cash } & \$ 50,000 & \$ 60,000 \\\text { Accounts receivable } & 112,000 & 108,000 \\\text { Inventories } & 105,000 & 93,000 \\\text { Prepaid expenses } & 4,500 & 6,500 \\\text { Accounts payable (merchandise creditors) } & 75,000 & 89,000\end{array}$
What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?

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Difference

The state or quality of being unlike or dissimilar, often used to highlight diversity or distinguish between entities.

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The process by which businesses, technologies, cultures, and populations become integrated and interconnected globally, transcending national boundaries.

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A period marked by the profound transformation shift towards industrialization, secularization, rationalization, and the decline of tradition.

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