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An Analyst Compiled the Following Information for U Inc

question 69

Multiple Choice

An analyst compiled the following information for U Inc.for the year ended December 31,2016:
Net income was $1,700,000.
Depreciation expense was $400,000.
Interest paid was $200,000.
Income taxes paid were $100,000.
Common stock was sold for $200,000.
Preferred stock (8% annual dividend) was sold at par value of $250,000.
Common stock dividends of $50,000 were paid.
Preferred stock dividends of $20,000 were paid.
Equipment with a book value of $100,000 was sold for $200,000.
Using the indirect method,what was U Inc.'s net cash flow from operating activities for the year ended December 31,2016?

Calculate owner's equity, including understanding components like net income, investments, and drawings.

Understand the composition and purpose of financial statements, including the balance sheet and income statement.

Understand how transactions impact financial statements.

Calculate net income using revenues and expenses.

Definitions:

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired: a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Reinforcement

In behavioral psychology, an event that strengthens or increases the likelihood of a behavior by providing a consequence an individual finds rewarding.

Microsystem

In bioecological systems theory, the innermost level of context, which includes an individual’s immediate physical and social environment.

Mesosystem

In bioecological systems theory, the relations and interactions among microsystems.