Ohio,IncUses the Indirect Method to Prepare the Statement of Cash

question 149

Multiple Choice

Ohio,Inc.uses the indirect method to prepare the statement of cash flows.Refer to the following income statement:

Additional information provided by the company includes the following:
Current assets,other than cash,decreased by $5200.
Current liabilities increased by $2300.
Compute the net cash provided by (used for) operating activities.

• A)$(28,600)
• B)$(55,800)
• C)$10,200
• D)$33,600

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Definitions:

Cumulative Unrecognized Gains

Gains not yet recognized in financial statements, typically relating to investments or assets.

Pension Plan

A retirement plan that outlines the benefits that employees will receive upon retirement, which is funded by contributions from the employer, the employee, or both.

Corridor

In financial terms, a corridor can refer to the allowable range of values for financial instruments or within financial models to trigger certain actions or constraints.

Prepaid Pension Asset

An asset on the balance sheet that occurs when a company pays more into a pension plan than the current cost recognized for the benefits related to the period.