A Company Had Net Income of $252,000

question 176

Multiple Choice

A company had net income of $252,000. Depreciation expense is $26,000. During the year, accounts receivable and inventory increased by $15,000 and $40,000, respectively. Prepaid expenses and accounts payable decreased by $2,000 and $4,000, respectively. There was also a loss on the sale of equipment of $3,000. How much was the net cash flow from operating activities on the statement of cash flows using the indirect method?

• A) $217,000
• B) $224,000
• C) $284,000
• D) $305,000

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Definitions:

Cognitive-behavioral

A therapeutic approach that aims to solve problems concerning dysfunctional emotions, behaviors, and cognitions through a goal-oriented, systematic procedure.

Humanistic-existential

A psychological approach focusing on individual experience, personal freedom, and the meaning of life.

Psychodynamic-gestalt

An integrative therapeutic approach combining elements from both psychodynamic therapy, which focuses on unconscious processes, and Gestalt therapy, emphasizing present moment awareness and personal responsibility.

Sociocultural

Pertains to the way society and culture impact individual behavior and mindsets.