Cat Nap Corp How Will the Change in Accounts Receivable Be Shown on of Cash

question 50

Multiple Choice

Cat Nap Corp.uses the indirect method to prepare the statement of cash flows.Refer to the following section of the comparative balance sheet: $\begin{array}{c}\text {Cat Nap Corp.}\\\text {Comparative Balance Sheet}\\\text {December 31, 2017 and 2016}\\\begin{array}{|l|r|r|r|}\hline& 2017 & 2016 & \text { Increase/(Decrease) } \\ \hline \text { Cash } & \$ 45,000 & \$ 27,000 & \$ 18,000 \\\hline \text { Accounts Receivable } & 48,000 & 45,000 & 3,000 \\\hline \text { Merchandise Inventory } & \underline{180,00} & \underline{132,000} & \underline{48,000} \\\hline \text { Total Assets } & \$ 273,00 & \$ 204,000 & \$ 69,000 \\\hline\end{array}\end{array}$ How will the change in Accounts Receivable be shown on the statement of cash flows?

• A)addition to net income under the operating activities section
• B)subtraction from net income under the operating activities section
• C)positive cash flow under the financing activities section
• D)negative cash flow under the investing activities section

Appreciate the role of networking and weak ties in fostering innovation and sustainability.

Recognize industries that are pioneers in adopting sustainable practices.

Understand the impact of cultural dimensions on communication and behavior in the workplace.

Recognize the importance and roles of nonverbal communication cues in transmitting messages.

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Definitions:

Tariffs

Taxes imposed on imported goods and services, used to restrict trade, as they increase the price of imported goods and services, making them more expensive to consumers.

Foreign Competition

Foreign competition involves businesses based in one country competing against products or services offered by companies based in other countries.

Supply Chains

Networks of individuals, organizations, resources, activities, and technology involved in the production and delivery of a product or service from supplier to consumer.

Culture

The set of values, guiding beliefs, understandings, and ways of doing things shared by members of a society; exists on two levels.