Felix Skateboards Company Uses the Indirect Method to Prepare the Statement

question 56

Multiple Choice

Felix Skateboards Company uses the indirect method to prepare the statement of cash flows.Refer to the following income statement:

Additional information provided by the company includes the following:
1.Current assets,other than cash,increased by $21,000.
2.Current liabilities decreased by $1,500.
Compute the net cash provided by (used for) operating activities.

• A)$26,200
• B)$40,200
• C)$34,700
• D)$12,500

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Definitions:

Privately Held

A business ownership structure where the company's shares are not available for public trading on stock exchanges.

Greenmail

A strategy where a company buys back its shares from a potential acquirer at a premium to avoid a takeover bid.

Hostile Takeover

The acquisition of one company by another without approval from the target company's management.

Market Price

The contemporary market cost for acquiring or disposing of assets or services.