Using the Information Provided,calculate Net Income for 2013

question 72

Multiple Choice

Using the information provided,calculate net income for 2013.Assume a tax rate of 35 percent.
Year 2013
Inventory $5,000
Revenues 200,000
Depreciation expense 5,000
Cost of goods sold 100,000
Interest expense 10,000
Operating expenses 30,000

• A)$35,750
• B)$44,000
• C)$50,000
• D)$19,250

Understand the principles of cash flow statement preparation under both GAAP and IFRS.

Differentiate between operating, investing, and financing activities in the context of cash flow statements.

Identify the effects of specific transactions on cash flow statement categories.

Recognize the implications of using direct and indirect methods for reporting cash flows from operating activities.

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Definitions:

Antedated

Refers to something that precedes another thing in time, especially a document or statement that bears a date earlier than the actual date of execution.

HDC Status

A legal term describing the status of a holder in due course, who acquires a negotiable instrument under certain conditions, granting them rights free from many defenses.

Sufficient Consideration

Consideration in contract law that is adequate and meets legal requirements, ensuring the contract is binding and enforceable.

Promissory Note

A financial document in which one party promises to pay another party a specified sum of money at a defined future date or on demand.