An Analyst Compiled the Following Information for U, Inc

question 41

Multiple Choice

An analyst compiled the following information for U, Inc. for the year ended December 31, 2009:  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 (eight percent 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, 2009?

• A)$2,000,000.
• B)$2,030,000.
• C)$2,080,000.
• D)$2,100,000.Cash flows from operations using the indirect method are computed by taking net income plus noncash expenses ) = $2,000,000.Note that interest and income taxes paid are expenses shown on the income statement and will already be factored into net income.The other information relates to financing and investing cash flows.

Identify the financial statement(s) where an account balance will be reported.

Analyze the effect of specific account balances on the determination of net income.

Identify and understand various neurological disorders and diseases.

Describe the functions of different parts of the brain and nervous system.

---

Definitions:

Demand Function

A mathematical formula representing the relationship between the quantity of a good consumers are willing to buy and the price of the good, alongside other factors like income and the prices of related goods.

Total Revenue

The total income generated from the sale of goods or services before any costs are subtracted.

Price Elasticity

A measure of the responsiveness of the quantity demanded or supplied of a good to a change in its price.

Demand Function

An equation that describes the quantity of a good or service demanded at different prices.