During the Year,the Abbot Company Had Cash Flow from Operating

question 135

Multiple Choice

During the year,the Abbot Company had cash flow from operating activities of $133,000 and the following changes in account balances:
1) The Accumulated Depreciation account had a beginning balance of $25,000 and an ending balance of $35,000.The increase was due to depreciation expense.
2) The long-term Notes Payable account had a beginning balance of $40,000 and an ending balance of $15,000.The decrease was due to repayment of debt.
3) The Accounts Receivable account had a beginning balance of $60,000 and an ending balance of $50,000.
4) The Equipment account had a beginning balance of $25,000 and an ending balance of $92,500.The increase was due to the purchase of equipment for cash.
5) The Long-Term Investments account (marketable securities) had a beginning balance of $18,000 and an ending balance of $12,500.The decrease was due to the sale of investments at cost.
6) The amount of cash dividends declared and paid during the year was $22,000.
7) The Interest Payable account had a beginning balance of $2,250 and an ending balance of $1,250.
What was the net change in cash?

• A)$24,000
• B)$12,000
• C)$10,000
• D)($24,000)

---

Definitions:

Sports Beverage

Drinks formulated to rehydrate, replenish electrolytes, and provide energy during or after intensive physical activity.

Hydration

The process of providing adequate fluid to the body to maintain optimal physiological function and health.

Carbohydrates

Essential nutrients found in foods and drinks that provide energy for the body, including sugars, starches, and fibers.

Physical Activity

Any physical action generated by the contraction of skeletal muscles that leads to the consumption of energy, encompassing activities performed during work, play, household tasks, commuting, and leisure activities.