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

question 89

Multiple Choice

Ohio,Inc.uses the indirect method to prepare the statement of cash flows.Refer to the following income statement: $\begin{array}{c}\text {Ohio, Inc.}\\\text {Income Statement}\\\text {Year Ended December 31, 2018}\\\begin{array}{|l|r|r|}\hline \text { Revenues and Gains: } & & \\\hline \text { Sales Revenue } & \$ 158,000 & \\\hline \text { Interest Revenue } & \underline{6800} & \\\hline \text { Total Revenues and Gains } & & \$ 164,800\\\hline \text { Expenses and Losses: } & \\\hline \text { Cost of Goods Sold } & \$ 150,000 \\\hline \text { Salary Expense } & 21,000 \\\hline \text { Depreciation Expense } & 7200 \\\hline \text { Other Operating Expenses } & 13,100\\\hline \text { Interest Expense } & 16,200 \\\hline \text { Loss on Sale of Plant Assets } & 5200 \\\hline \text { Income Tax Expense } & 6000 \\\hline \text { Total Expenses and Losses } & & 218,700 \\\hline \text { Net Income (Loss) } & & \$(53,900) \\\hline\end{array}\end{array}$ Additional information provided by the company includes the following:
Current assets,other than cash,decreased by $5500.
Current liabilities increased by $2500.
Compute the net cash provided by (used for) operating activities.

• A) $(33,500)
• B) $(61,900)
• C) $10,700
• D) $38,700

Comprehend decision-making processes and their relevance to meeting effectiveness.

Appreciate the role of preparation and structure in conducting effective meetings.

Understand the dynamics of virtual meetings and the challenges they pose.

Acknowledge the variety of meeting formats and their specific applications.

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Definitions:

Cash Account

A cash account is a business or brokerage account that requires the account holder to pay the full amount for securities purchased.

Debiting

The process of recording an entry on the left side of the accounting ledger, indicating an increase in assets or expenses, or a decrease in liabilities, equity, or income.

Consuming Goods

Goods that are used by consumers and are typically expended when used, opposed to durable goods which are designed to last for a prolonged period.

Generating Revenues

Generating revenues refers to the process through which a business earns money by selling goods or providing services.