Dennis Corporation Prepared the Following Data (In Dollars)for the Current

question 64

Multiple Choice

Dennis Corporation prepared the following data (in dollars) for the current year: $\begin{array}{lrr} \text { Increase in accounts receivable } &\$6,000\\ \text { Decrease in inventory } &2,400\\ \text { Increase in prepaid expenses} &1,600\\ \text { Depreciation expense, equipment } &7,000\\ \text { Loss on sale of equipment } &1,500\\ \text { Net income} &130,000\\\end{array}$
Using the indirect method,what is the net cash flow from operating activities?

• A) $146,800
• B) $133,300
• C) $101,200
• D) $118,000

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Definitions:

Percentage Change

A mathematical calculation that shows how much a number has increased or decreased compared to its previous value, expressed as a percentage.

Complementary Goods

Goods and services that are used together; when the price of one falls, the demand for the other rises (and conversely).

Inelastic

A term describing demand when it changes by a smaller percentage than changes in price.

Elasticity of Demand

An index indicating the degree to which demand for a product changes in response to a price change, where an elasticity greater than one signifies a high level of responsiveness.