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

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Definitions:

Accessory Pigments

Pigments in plants and algae that capture light energy and pass it to chlorophyll during photosynthesis, extending the range of light wavelengths that can be used.

Photosynthetic Organisms

Organisms that convert light energy into chemical energy through the process of photosynthesis, including plants, algae, and certain types of bacteria.

Photons

Elementary particles of light and other forms of electromagnetic radiation, with wave-particle duality.

Thylakoid Membrane

Inner membrane system that carries out light-dependent reactions in chloroplasts and cyanobacteria.