Optics Company Uses the Direct Method for Preparing Its Statement

question 27

Multiple Choice

Optics Company uses the direct method for preparing its statement of cash flow.Optics reports the following information regarding 2019: From the income statement:
Sales Revenues,$266,000
Cost of Goods Sold,$212,000
Operating Expenses,$37,000
Net Income $17,000
From the balance sheet:
Assume that there were no sales of long-term assets,no interest revenue,and no expenses other than the expenses shown above.Also,assume that Accounts Payable are for purchases of merchandise inventory only.Accrued liabilities relate to operating expenses.What amount will be shown for the net cash provided by operating activities?

• A)$64,300
• B)$24,300
• C)$17,000
• D)$9300

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Definitions:

Job Performance

Measures how well an employee executes their tasks and duties relative to the job's requirements.

Oregon Vocational Interest Scales

A psychometric instrument used to assess individuals' career and vocational interests to guide them in their career planning.

Holland Scale Dimension

Refers to one of six personality types—Realistic, Investigative, Artistic, Social, Enterprising, and Conventional—proposed by John Holland in his theory of career and vocational choice.

Adventure Career Type

A career path characterized by a high level of dynamism, risk-taking, and the seeking of new experiences and challenges.