Calculate the Cash from Operating Activities Using the Following Information

question 28

Multiple Choice

Calculate the cash from operating activities using the following information:

Profit $142,000.
Depreciation $46,000.
Accounts receivable increased by $10,000.
Accrued expense increased by $12,000.
Inventory increased by $14,000.

• A)$176,000.
• B)$186,000.
• C)$165,000.
• D)$200,000.

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Definitions:

Egocentrism

A cognitive bias where an individual is unable to differentiate between their own perspective and that of others.

Theory Of Mind

The ability to attribute mental states—beliefs, intents, desires, emotions, knowledge—to oneself and others and to understand that others have beliefs, desires, and intentions that are different from one's own.

Sensorimotor Stage

The first stage in Piaget's theory of cognitive development, covering the period from birth to about 2 years of age, where infants learn through interacting with their environment.

Piaget

A Swiss psychologist known for his pioneering work in the study of child development and his theory of cognitive development which outlines how children progress through various stages of intellectual growth.