In 1969,Don Bought a Dodge Dart for $2500

question 169

Multiple Choice

In 1969,Don bought a Dodge Dart for $2500.In 2015,he bought a Honda Civic for $22,000.If the price index in 1969 was 39.2 and the price index in 2015 was 190,what is the price of the Dodge Dart in 2015 prices?

• A) $3583
• B) $4500
• C) $9762
• D) $12,117

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Definitions:

Operating Activities

Operating activities involve the primary activities that a business engages in to generate earnings, including production, sales, and delivery of its goods or services.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life.

Accounts Payable

Liabilities of a business that are due to creditors within a short period, typically less than a year.

Net Cash

The amount of cash available after all cash inflows and outflows have been accounted for, often within a specific reporting period.