Pinecrest Company
Use the Selected Data from Pinecrest Company's Financial

question 48

Multiple Choice

Pinecrest Company
Use the selected data from Pinecrest Company's financial statements to answer the following question.
​
$\begin{array}{lrr}&2018&2017\\\text { Cash } & \$ 22,000 & \$ 14,000 \\\text { Accounts receivable } & 42,000 & 16,000 \\\text { Merchandise inventory } & 22,000 & 83,000 \\\text { Prepaid expenses } & 23,000 & 18,000 \\\text { Total current assets } & \$ 109,000 & \$ 131,000\\\\\text { Total current liabilities } & \$ 65,000 & \$ 72,000 \\\text { Net credit sales } & 221,000 & 326,000 \\\text { Cost of goods sold } & 168,000 & 299,000 \\\text { Net cash flow from operating activities } & 16,000 & 29,000\end{array}$ ​
-Refer to the data for Pinecrest Company.
Which of the following statements is true?

• A)Net income must be at least $36,000 for 2018.
• B)Net income must be less than $36,000 for 2018.
• C)Cash flows from operating activities is twice as large as net income for 2018.
• D)The amount of net income for 2018 cannot be determined based on the data provided.

---

Definitions:

Cultural Beliefs

The shared ideas, values, and practices that characterize a group of people and influence their behaviors and perceptions.

Cultural Aspects of Pain

The influence of cultural background on individuals' perceptions, expressions, and management strategies of pain.

Self-Treatment

Actions taken by an individual to treat his or her own ailment without professional medical advice.

Over-the-Counter Medicines

Medications that can be purchased without a prescription, used to treat common medical conditions.