Exhibit 19-6
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

question 57

Multiple Choice

Exhibit 19-6
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)
You are provided with the following information for the Klandy Corporation. $\begin{array}{lcc} & 2008 & 2009 \\\hline \text { Net Income } & \$ 1200 & \$ 1500 \\\text { Depreciation } & \$ 200 & \$ 300 \\\text { Total Current Assets } & \$ 700 & \$ 900 \\\text { Total Current Liabilities } & \$ 500 & \$ 800\end{array}$
During 2009 Klandy Corp. made capital expenditures totaling $500 and disposed property worth $400.
-Refer to Exhibit 19-6. What is the firm's cash flow from operating activities for the year 2009?

• A) $2100
• B) $1900
• C) $1800
• D) $1700
• E) $1600

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Definitions:

Statement of Cash Flows

is a financial statement that details the inflows and outflows of cash within a company over a specific period, highlighting its operating, investing, and financing activities.

Financing Activities

Transactions with creditors or investors used to fund either company operations or expansions.

Investing Activities

Refers to the purchasing and selling of long-term assets and other investments, not including cash equivalents, which are reported in a company's cash flow statement.

Indirect Method

A cash flow statement approach that adjusts net income for the effects of non-cash transactions and changes in working capital to calculate cash from operating activities.