Mercury Corporation Reported the Following Information on Its Financial Statements

question 6

Multiple Choice

Mercury Corporation reported the following information on its financial statements: $\begin{array}{lll}&\underline{ 2014 }&\underline{ 2013 }\\\text { Accountsreceivable } &\$ 150,000 & \$ 120,000 \\\text { Prepaid expenses } &9,000 & 10,000 \\\text { Accounts payable } &65,000 & 80,000 \\\text { Salaries payable } &12,000 & 5,000 \\\text { Net income } &200,000 & \\\text { Depreciation expense } &14,000 & \\\text { Gain on sale of equipment } &6,000 &\end{array}$
If the company uses the indirect method 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)$171,000
• B)$215,000
• C)$245,000
• D)$183,000

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Definitions:

Electrode

A conductor through which electricity enters or leaves an object, substance, or region, used in various applications like batteries or medical devices.

ECG

An ECG, or Electrocardiogram, is a medical test that measures the electrical activity of the heart to identify abnormalities in heart rhythm and structure.

Color Code

A system for displaying information by using different colors for easy identification and categorization.

Lead Arrangement

In the context of electrocardiography, lead arrangement refers to the configuration and placement of electrodes on the body to measure the heart's electrical activity.