Depreciation for the Year Was $80,000 and Net Income Was

question 113

Multiple Choice

Depreciation for the year was $80,000 and net income was $323,000.Assume the rest of the company's transactions were cash transactions.How much was net cash from operating activities?

• A) $243,000
• B) $403,000
• C) $323,000
• D) None of these answers are correct.

Recognize the composition of stockholders' equity and the distinction between different equity accounts.

Calculate and interpret earnings per share.

Understand the separate legal identity of corporations and its implications for financial reporting.

Compute and analyze the return on common stockholders' equity.

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Definitions:

Bottom-Up Approach

An investment analysis approach focusing on individual stocks or companies, as opposed to the broader market conditions or economic trends.

Operating Cash Flow

The total amount of cash generated by a company's normal business operations.

Noncash Deductions

Expenses that reduce a company's taxable income but do not involve an actual cash outflow, such as depreciation and amortization.

Net Working Capital

Represents the difference between a company's current assets and current liabilities, indicating the liquidity of the business.