The Dickinson Company Reported Net Income of $155,000 for the Current

question 34

Essay

The Dickinson Company reported net income of $155,000 for the current year. Depreciation recorded on buildings and equipment amounted to $65,000 for the year. In addition, a building with an original cost of $250,000 and accumulated depreciation of $190,000 on the date of the sale, was sold for $75,000. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:
​ $\begin{array}{lrr}&\text { End of Year }&\text { Beginning of Year }\\\text { Cash } & \$ 20,000 & \$ 15,000 \\\text { Accounts receivable } & 19,000 & 32,000 \\\text { Inventories } & 50,000 & 65,000 \\\text { Accounts payable } & 12,000 & 18,000\end{array}$ Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method.

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Definitions:

Stimulus

Any object, event, or change in the environment that elicits a sensory or behavioral response.

Higher-Order Conditioning

A process in classical conditioning where a conditioned stimulus is paired with a new neutral stimulus, creating a second (often weaker) conditioned response.

Reinforcer

Any stimulus that strengthens or increases the probability of a specific response or behavior by being delivered or removed after the behavior occurs.

Punisher

In behavioral psychology, any stimulus that decreases the likelihood of a behavior being repeated.