Wessen Company Reports Net Income of $180,000 for the Year

question 25

Multiple Choice

Wessen Company reports net income of $180,000 for the year ended December 31,2013.It also reports $45,800 depreciation expense,$21,410 amortization expense,and a $15,000 gain on the sale of machinery.Its comparative balance sheets reveal a $28,300 increase in accounts receivable,$20,400 decrease in accounts payable,$10,470 increase in prepaid expenses,and $33,140 decrease in wages payable.What net cash flows are provided (used) by operating activities using the indirect method?

• A)($140,200)
• B)$133,490
• C)$139,900
• D)($133,490)
• E)$78,300

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Definitions:

Hip Bones

The large bones that form the base of the pelvis and articulate with the femur at the hip joints; these are comprised of three parts: ilium, ischium, and pubis.

Coccyx

The small, triangular bone at the base of the spinal column, consisting of three to five fused vertebrae, also known as the tailbone.

Interosseous Membrane

A fibrous sheet connecting the bones of the forearm (ulna and radius) or the leg (tibia and fibula), providing stability and a surface for muscle attachment.

Ligament

Fibrous connective tissue that connects bones to other bones, providing joint stability.