The Net Income Reported on the Income Statement for the Current

question 53

Multiple Choice

The net income reported on the income statement for the current year was $310,000. Depreciation recorded on fixed assets and amortization of patents for the year were $40,000 and $9,000, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: $\begin{array}{lll}\text { Beginning } & {\text { End }} \\\hline \$ 60,000 & \$ 50,000 & \text { Cash } \\108,000 & 112,000 & \text { Accounts receivable } \\93,000 & 105,000 & \text { Inventories } \\6,500 & 4,500 & \text { Prepaid expenses }\\89,000 & 75,000&\text { Accounts payable (merchandise creditors) }\end{array}$ What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?

• A) $233,000
• B) $289,000
• C) $387,000
• D) $331,000

---

Definitions:

Phases

Distinct periods or stages in a process of development or a series of operations, often marked by specific features or tasks.

Virtual Worlds

Online simulated environments where users can interact with each other and the environment using avatars.

In-person Meetings

Face-to-face gatherings where individuals come together in a physical space to discuss, plan, or collaborate on various topics or projects.

Top Management

The highest tier of executives and administrative leaders in an organization, responsible for strategic decisions.