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

---

Definitions:

Power Surges

Brief increases in voltage in an electrical circuit that can damage electrical equipment if not properly protected.

Polymorphic Virus

A type of malware that changes its code or signature patterns with each infection, making it difficult for antivirus programs to recognize and remove it.

Encryption Virus

A type of malware that encrypts the files on a victim's device, demanding payment for decryption.

Logic Bomb

Malicious code programmed to trigger under specific conditions, causing damage or disruption to the system's operations.