Wessen Company Reports Net Income of $180,000 for the Year

question 70

Multiple Choice

Wessen Company reports net income of $180,000 for the year ended December 31,2010.It also reports $45,800 depreciation expense,$21,410 amortization expense and a $15,000 gain on the sale of machinery.Its comparative balance sheets reveal a $28,300 increase in accounts receivable,$20,400 decrease in accounts payable,$10,470 increase in prepaid expenses,and $33,140 decrease in wages payable.What is the net cash flows provided (used) by operating activities using the indirect method?

• A)($140,200)
• B)$133,490
• C)$139,900
• D)($133,490)
• E)$78,300

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Definitions:

Efferent

Referring to nerve fibers that carry signals away from the central nervous system to the peripheral effectors, such as muscles or glands.

Midbrain

A portion of the central nervous system associated with vision, hearing, motor control, sleep/wake, arousal (alertness), and temperature regulation.

Gray Matter

The darker-colored regions of the brain and spinal cord consisting mainly of neuronal cell bodies and branching dendrites.

White Matter

Brain and spinal cord tissue consisting mainly of myelinated nerve fibers, which facilitate the rapid transmission of signals between different parts of the central nervous system.