The Following Information Applies to the Questions Displayed Below

question 59

Multiple Choice

The following information applies to the questions displayed below
Packard Company engaged in the following transactions during Year 1, its first year of operations: (Assume all transactions are cash transactions.)

1) Acquired $950 cash from the issue of common stock.
2) Borrowed $420 from a bank.
3) Earned $650 of revenues.
4) Paid expenses of $250.
5) Paid a $50 dividend.

During Year 2, Packard engaged in the following transactions: (Assume all transactions are cash transactions.)

1) Issued an additional $325 of common stock.
2) Repaid $220 of its debt to the bank.
3) Earned revenues of $750.
4) Incurred expenses of $360.
5) Paid dividends of $100.

-What is the net cash inflow from operating activities that will be reported on Packard's statement of cash flows for Year 1?

• A)$400
• B)$650
• C)$350
• D)$820

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Definitions:

Ionic Bond

A chemical bond formed between two ions with opposite charges through the transfer of electrons.

Covalent Bond

A chemical bond formed by the sharing of one or more pairs of electrons between atoms to achieve stability.

Biological Molecules

Biological molecules are the essential substances that are the building blocks of living organisms, including proteins, nucleic acids, carbohydrates, and lipids.

Stabilizes

Refers to making something more steady or firmly fixed in place, or making a chemical compound resistant to change.