Use the Following Information and the Indirect Method to Calculate

question 44

Multiple Choice

Use the following information and the indirect method to calculate the net cash provided or used by operating activities:
$$\begin{array} { | l | r | } \hline \text { Net income } & \$ 12,300 \\\hline \text { Depreciation expense } & 12,000 \\\hline \text { Payment on mortgage payable } & 15,000 \\\hline \text { Gain on sale of land } & 7,500 \\\hline \text { Increase in merchardise inventory } & 2,050 \\\hline \text { Increase in accounts payable } &6 , 1 5 0 \\\hline \text { Proceeds from sale of land } & 8 , 0 0 0 \\\hline\end{array}$$

• A) $12,700
• B) $13,900
• C) $20,900
• D) $28,400
• E) $35,900

---

Definitions:

Dependent Variable

The variable being tested and measured in an experiment, its outcome depends on the influence of the independent variable.

Factorial Research Design

Research design consisting of all possible combinations of two or more independent variables.

Marginal Mean

The arithmetic mean of values for a particular variable, considering the impact of covariates in the analysis.

Marginal Mean

The average value of a variable across levels of another variable, often used in the context of multivariate data analysis.