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A Company Has a Net Income of $39,000 and Depreciation

question 66

Multiple Choice

A company has a net income of $39,000 and depreciation expenses of $9,000. During the year, its accounts payable balance decreased by $5,000. What is the net cash flow from operating activities using the indirect method for preparing the statement of cash flows?


Definitions:

Serratus Posterior Superior

A muscle situated in the upper back that helps in elevating the ribs during inhalation.

Elevate the Ribs

The action of increasing the thoracic cavity volume to aid in inhalation, primarily performed by the intercostal muscles.

Internal Intercostals

Muscles located between the ribs that help with breathing by reducing the space in the chest during exhalation.

External Intercostals

Muscles located between the ribs that help expand the thoracic cavity during inspiration.

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