The Comparative Balance Sheets of Apollo Rocket, Inc

question 172

Multiple Choice

The comparative balance sheets of Apollo Rocket, Inc. show a net increase in inventory of $79,000 and a net decrease in accounts payable of $42,000 during 2009. In computing net cash flow from operating activities under the indirect method, net income for 2009 should be:

• A) Increased by $37,000.
• B) Reduced by $37,000.
• C) Increased by $121,000.
• D) Reduced by $121,000.

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Definitions:

Impressment

The practice used by navies to force civilians or sailors into military service, notably by the British Royal Navy during the 18th and early 19th centuries, often leading to tensions with other countries.

Baratarian Pirates

A group of 19th-century pirates led by Jean Lafitte, who operated out of the Barataria Bay south of New Orleans, and later aided the United States in the War of 1812.

French Revolution

A pivotal period of radical social and political upheaval in France from 1789 to 1799, leading to the decline of monarchies and churches and the rise of democracy and nationalism.