Walker Company Reports Net Income of $420,000 for the Year

question 10

Multiple Choice

Walker Company reports net income of $420,000 for the year ended December 31, 2010. It also reports $75,600 depreciation expense and a gain of $11,000 on the sale of machinery. Its comparative balance sheets reveal a $33,600 decrease in accounts receivable, $17,220 increase in accounts payable, $9,240 decrease in prepaid expenses, and $13,020 increase in wages payable. What is the net cash flows provided (used) by operating activities using the indirect method?

• A) ($539,200)
• B) $300,800
• C) $561,200
• D) ($300,800)
• E) $539,200

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Definitions:

Night Terror Disorder

A sleep disorder causing feelings of terror or dread, and typically occurs during non-REM sleep stages.

Sleep-Related Bruxism

The grinding or clenching of teeth during sleep, often resulting in dental damage or discomfort.

Primary Insomnia

A sleep disorder characterized by persistent difficulty falling or staying asleep that is not attributable to medical, psychiatric, or environmental causes.

Circadian Drives

Biological processes that regulate sleep and wakefulness, influenced by the natural light-dark cycle of the external environment.