Lense Laboratories' Net Income Was $250,000 A)$152,000

question 49

Multiple Choice

Lense Laboratories' net income was $250,000.Given the account information below,what is the net operating cash flows for Lense Laboratories?
$$\begin{array} { | l | r | } \hline \text { Increase in Accounts Receivable } & \$ 60,000 \\\hline \text { Increase in Salaries Payable } & \$ 50,000 \\\hline \text { Decrease in Inventory } & \$ 30,000 \\\hline \text { Depreciation Expense } & \$ 45,000 \\\hline \text { Increase in Prepaid Insurance } & \$ 3,000 \\\hline\end{array}$$

• A)$152,000.
• B)$278,000.
• C)$312,000.
• D)$438,000.

---

Definitions:

Material Effect

A significant impact or change on a company's operations, financial condition, or future prospects.

Unilateral Mistake

A situation in a contract where one party is mistaken about a critical fact of the agreement, which could potentially lead to the contract being voidable by the mistaken party.

Bilateral

Involving two parties, sides, or aspects, often referring to agreements or relationships between two entities.

Mutual Mistake

A situation in contract law where all parties involved have a mistaken belief about a vital fact upon which the contract is based.