The Comparative Balance Sheets of Posner Company, for Years 1

question 42

Multiple Choice

The comparative balance sheets of Posner Company, for Years 1 and 2 ended December 31, appear below in condensed form: ​ ​
Additional data for the current year are as follows: ​
What are the net cash flows from operating, investing, and financing activities for Year 2?
​

• A) operating: $108,000; investing: ($105,200); financing: ($60,000)
• B) operating: $151,800; investing: ($84,200); financing: ($64,600)
• C) operating: $122,200; investing: ($84,200); financing: ($35,000)
• D) operating: $172,200; investing: ($109,200); financing: ($60,000)

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Definitions:

Factory Departments

Specific areas within a factory, each dedicated to a particular stage of the manufacturing process or type of task.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value over time.

Factory Equipment

Assets such as machinery and tools that are used in the production process within a manufacturing or production facility.

Factory Overhead

The indirect costs associated with manufacturing, including utilities, maintenance, and management salaries, but not including raw materials or direct labor.