Gilmore Company Uses the Direct Method to Prepare Its Statement

question 26

Multiple Choice

Gilmore Company uses the direct method to prepare its statement of cash flows.Refer to the following financial statement information for the year ended December 31,2018: $\begin{array}{c}\text {Dental, Inc,}\\ \text {Income Statement}\\\text {December 31,2019}\\\begin{array}{|l|r|l|}\hline\text { Sales Revenue } & \$ 289,600 & \\\hline \text { Interest Revenue } & 2600 & \\\hline \text { Gain on Sale of Plant Assets } & 6,000 & \\\hline \text { Total Revenues and Gains } & & \$ 298,300\\\hline\text { Cost of Goods Sold } & 146,800 \\\hline \text { Salaries and Wages Expense } & 47,500 \\\hline \text { Depreciation Expense - Plant Assets } & 16,000 \\\hline \text { Other Operating Expense } & 24,700 \\\hline\text { Interest Expense } & 3,500 \\\hline \text { Income Tax Expense } & 7,800 \\\hline \text { Total Expenses } &&246,300\\\hline\text { Net Income }&&\$52,000\\\hline\end{array}\end{array}$ Use the direct method,to compute the net cash provided by operating activities.(Accrued Liabilities relate to other operating expense.)

• A) $(54,200)
• B) $38,200
• C) $(38,200)
• D) $54,200

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Definitions:

Leader Behaviors

Refers to the actions and conduct displayed by leaders, encompassing various styles and strategies used to influence, motivate, and guide followers towards achieving goals.

Time Management

The process of organizing and planning how to allocate one's time between specific activities efficiently.

Managerial Work

Refers to the functions and activities performed by managers, including planning, organizing, leading, and controlling to achieve organizational objectives.

Early Contingency Theories

Theories suggesting that the effectiveness of a leader or management approach is contingent upon factors such as the organizational environment and task characteristics.