A Corporation Is Preparing a Statement of Cash Flows

question 121

Essay

A corporation is preparing a Statement of Cash Flows. Complete the following part of it in the spaces provided (be sure to indicate + or -): $\begin{array} { | l | l | } \hline \text { Operating Activities } & \text { Amount } \\\hline \text { Net income (accrual), } \$ 45,000 & \$ \\\hline \text { Adjustments to convert net income to cash from operating activities: } & \\\hline \text { Depreciation Expense, } \$ 6,000 & \\\hline \text { Decrease in Accounts Receivable balance, } \$ 2,000 & \\\hline \text { Decrease in Accrued wages payable balance, } \$ 1,000 & \\\hline \text { Amortization of patent, } \$ 500 & \\\hline \text { Increase in Inventory balance, } \$ 4,000 & \\\hline \text { Decrease in Accounts Payable balance, } \$ 1,500 & \\\hline \text { Net cash inflow (outflow) from operations } &\$ \\\hline\end{array}$

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Definitions:

Maslow's Hierarchy

A psychological theory proposed by Abraham Maslow that categorizes human needs into a five-tier model in the shape of a pyramid, starting from basic physiological needs to self-actualization at the top.

McClelland

David McClelland, a psychologist known for his work on motivation and the theory of Needs, including Achievement, Affiliation, and Power.

Achievement Needs

The desire or motivation of an individual to achieve excellence, accomplish challenging goals, and advance personally or professionally.

Moderately Difficult

Characterized by a level of challenge that is neither too easy nor too hard, requiring a fair amount of effort to overcome.