The Net Income Reported on the Income Statement for the Current

question 40

Multiple Choice

The net income reported on the income statement for the current year was $275,000.Depreciation recorded on fixed assets and amortization of patents for the year were $40,000 and $9,000,respectively.Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?

• A) $198,000
• B) $324,000
• C) $352,000
• D) $296,000

---

Definitions:

Proglottids

Segments that make up the body of tapeworms, each capable of reproducing sexually.

Cercariae

The larval stage of certain parasitic flatworms belonging to the class Trematoda, which is released from the intermediate host and seeks out the definitive host in which it will mature.

Sporocysts

A form of parasitic flatworm larvae that develops within a snail host, part of the life cycle in certain flukes.

Scolexes

The head segments of tapeworms, equipped with suckers or hooks for attaching to the host's intestinal wall.