A Company's Income Statement Showed the Following: Net Income, $124,000;

question 148

Multiple Choice

A company's income statement showed the following: net income, $124,000; depreciation expense, $30,000; and gain on sale of plant assets, $14,000. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $9,400; merchandise inventory increased $18,000; prepaid expenses decreased $6,200; accounts payable increased $3,400. Calculate the net cash provided or used by operating activities.

• A) $139,000.
• B) $141,000.
• C) $145,800.
• D) $155,000.
• E) $167,000.

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Definitions:

Unanticipated Rate

A rate of change in prices or interest that market participants did not expect, often influencing investment decisions and economic forecasts.

Systematic Risk

The risk inherent to the entire market or market segment, also known as market risk, which cannot be avoided through diversification.

Asset-specific Risk

The risk that affects the value of a particular asset, such as changes in its market or sector, distinct from market-wide risk.

Unsystematic Risk

The risk associated with an individual asset or investment, distinct from market-wide risks.