A Company Reported the Following Information If the Indirect Method Is Used to Prepare the Operating

question 62

Multiple Choice

A company reported the following information: $\begin{array}{lll}&\underline{ 2014 }&\underline{ 2013 }\\ \text { Accountsreceivable } &\$ 50,000 & \$ 65,000 \\ \text { Inventories } &43,000 & 40,000 \\ \text { Accounts payable } &29,000 & 39,000 \\ \text {Net income } &100,000 & \\ \text { Depreciation expense } &11,000 &\end{array}$
If the indirect method is used to prepare the operating activities section of the statement of cash flows,what amount will be reported as net cash inflow from operating activities for 2014?

• A)$92,000
• B)$109,000
• C)$111,000
• D)$113,000

---

Definitions:

Fertilizer

A substance, either chemical or organic, introduced to soil or land to improve its fertility and boost the growth of plants.

Purely Competitive Industry

Markets where many sellers are offering a homogeneous product, and no single seller can influence the price.

Short-Run Costs

Costs that vary with the level of output in the short term, including both variable and fixed costs.

Dairy Farmers

Producers of milk and milk products, typically operating on farms that raise cows, goats, or other lactating livestock for dairy production.