Assuming There Are No Excess Amortizations or Other Intra-Entity Transactions

question 91

Multiple Choice

Assuming there are no excess amortizations or other intra-entity transactions, Compute the income from Devin reported on Pepe's books for 2017.

• A) $174,600.
• B) $184,800.
• C) $172,000.
• D) $171,000.
• E) $180,000.

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Definitions:

Net Cash Flows

The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Operating Activities

Transactions and events that enter into the determination of net profit or loss.

Interest Received

Income earned from investing in interest-bearing financial instruments or accounts, such as savings accounts, bonds, or loans.

Net Cash Inflow

The difference between the cash receipts and cash disbursements in a given period, indicating the net amount of cash generated.