Trinity Coatings Company Uses the Indirect Method to Prepare Its

question 128

Multiple Choice

Trinity Coatings Company uses the indirect method to prepare its statement of cash flows.Refer to the following information for 2018: The beginning balance in the Cash account was $2900.
Net cash provided by operating activities: $40,000
Net cash used for investing activities: $(25,500)
Net cash provided by financing activities: $1700
The statement of cash flows will show ________.

• A) ending cash of $16,200
• B) net cash provided by operating activities $42,900
• C) net cash provided by investing and financing activities $(23,800)
• D) ending cash of $19,100

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Definitions:

Ethical Rationalization

The process of justifying actions or decisions based on ethical principles, often used to explain or defend moral choices.

Forecasting

The process of making predictions about future events or trends, based on analysis of historical data and current information.

Cognitive Dissonance

A psychological phenomenon experienced when an individual holds two or more contradictory beliefs, ideas, or values, leading to discomfort and the motivation to reduce the inconsistency.

Unethical Decision

A choice made that goes against moral principles or ethical standards, often resulting in harm or unfairness to individuals or groups.