At the End of the First Year of Operations,the Balance

question 96

Multiple Choice

At the end of the first year of operations,the balance sheet of Huntington Beach Co.Industries had the following balances: Accounts Receivable,$5,000;Accounts Payable,$6,000;Inventory,$3,000;and Unexpired Insurance,$2,000.The corporation reported net income of $79,000 for the year,including depreciation expense of $5,000,and uses the indirect method of computing net cash flow from operating activities.Based on this information,net cash flow from operating activities is

• A)$82,000.
• B)$78,000.
• C)$70,000.
• D)$77,000.

---

Definitions:

Share Price

The current market price of a company’s stock, reflecting what investors are willing to pay for a share at a given time.

Expected Return

The mean of all the likely returns of securities or portfolios over a set period.

Growth Rate

The rate at which a company's earnings, revenue, or other financial metrics increase on a year-on-year basis expressed as a percentage.

Annual Dividend

The total dividend payments issued by a company to its shareholders in a year.