Wessen Company Reports Net Income of $200,000 for the Year

question 42

Multiple Choice

Wessen Company reports net income of $200,000 for the year ended December 31,2013.It also reports $40,000 depreciation expense,$22,500 amortization expense,and a $15,000 loss on the sale of machinery.Its comparative balance sheets reveal a $225,700 increase in accounts receivable,$31,600 decrease in accounts payable,$15,000 decrease in prepaid expenses,and $48,100 decrease in wages payable.What net cash flows are provided (used) by operating activities using the indirect method?

• A)($12,900)
• B)$57,900
• C)$50,400
• D)($57,900)
• E)($50,400)

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Definitions:

Impulse Control

The ability to resist or delay an immediate response or desire.

Resilience

The capacity to recover quickly from difficulties; toughness and the ability to bounce back from adversity.

Self-regard

An individual's perception, understanding, and respect for themselves, contributing to their self-esteem and confidence.

Stress Tolerance

The ability of an organism or system to withstand and adapt to stress or adversity.