Chapin Company Reported Net Income of $410,000 for 2009

question 148

Multiple Choice

Chapin Company reported net income of $410,000 for 2009. Balances of selected current asset and current liability accounts are as shown on the indicated dates: Depreciation expense for 2009 amounted to $65,000. Using only the above information, compute Chapin's net cash flow from operating activities (indirect method) for 2009:

• A) $470,600.
• B) $467,400.
• C) $460,600.
• D) $448,600.

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Definitions:

Tax Difference

The disparity between tax rates, regulations, or benefits in different jurisdictions or between different types of investments.

Financial Statements

Summarized records of a company's financial activities, including the balance sheet, income statement, and cash flow statement.

GAAP

Generally Accepted Accounting Principles; a collection of commonly-followed accounting rules and standards for financial reporting.

Future Decision Making

The process of considering and evaluating potential actions or policies with their anticipated outcomes in the context of future events.