The Records of WXY Provided the Following Information for the Year

question 117

Multiple Choice

The records of WXY provided the following information for the year ended December 31, 2011:
(1) Purchased a warehouse and paid for it by issuing 1,000 common shares; market value was $35 per share.
(2) Inventory increased by $4,000.
(3) Accounts payable decreased by $6,000.
(4) Declared a cash dividend, $5,000.
(5) Depreciation expense, $2,000.
(6) Net income, $19,000.
(7) Loss on sale of machine, $3,000.
(8) On December 31, 2011, paid insurance premium on all assets, for 2012 and 2013, $800. There was no prepaid insurance on January 1, 2011.
What was the net cash inflow from operating activities for 2011?

• A) $7,200
• B) $13,200
• C) $16,200
• D) $21,200

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Definitions:

Sub-classifications

Specific categories within a broader class that help in organizing data, information, or resources more precisely.

Current Assets

Assets expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business.

Financial Statements

Compiled financial data from a company, including the income statement, balance sheet, statement of cash flows, and statement of changes in equity, providing insight into its financial health.

Accounts Receivable

Liabilities of clients to a company for received goods or services awaiting payment.