An Analyst Compiled the Following Information for U Inc

question 151

Multiple Choice

An analyst compiled the following information for U Inc. for the year ended December 31, 2018: 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 (8% 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, 2018?

• A) $2,000,000.
• B) $2,030,000.
• C) $2,080,000.
• D) $2,100,000.

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Definitions:

Monozygotic Twins

Also known as identical twins, these are two individuals who originate from a single fertilized egg, sharing identical genetic material.

Zygotes

The initial cell formed when a new organism is produced by the union of male and female sexual cells, containing all the genetic information necessary to form a new individual.

Genetically Identical

Organisms or cells that have the exact same genetic material, often referred to as clones.

Fertility Drugs

Medications used to enhance reproductive ability by stimulating ovulation in individuals with fertility issues.