Below Is an Example of an Incorrectly Prepared Statement of Cash

question 21

Multiple Choice

Below is an example of an incorrectly prepared statement of cash flows. The descriptions of activities are correct.
$\begin{array}{l}\text { Cash from operating activities }\\\begin{array}{lr}\text { Net Income } & \$ 60,000 \\\text { Depreciation } & (4,000) \\\text { Increase in accounts receivable } & (2,000) \\\text { Increase in deferred tax liability } & (1,000) \\& \$ 53,000 \\\hline\text{Cash from investing activities}&\\\text{Purchase of marketable securities}&\$(48,000) \\\text{Dividends paid}&\$(1,500) \\& \$(46,500) \\\hline\text{Cash from financing activities}&\\\text{Increase in Short-term debt}&\$(500) \\\text{Increase in Long-term debt}&(2,500) \\&\$(3,000) \\\text{Increase in cash}&\$ 3,500 \\\end{array}\end{array}$
-The correct Cash flows from operating activities is:

• A) 65,500
• B) 63,500
• C) 53,500
• D) none of the above

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Definitions:

Endogamy

Marriage to someone within one’s social group.

Exogamy

Marriage to someone from a different social group.

Interracial Marriage

A marriage between partners who belong to different racial groups.

Family Values

A set of moral and social norms and beliefs traditionally upheld within a family, emphasizing responsibilities, ethics, and cultural heritage.