At the End of the First Year of Operations, the Statement

question 31

Multiple Choice

At the end of the first year of operations, the statement of financial position of Midwood Medical Supply showed the following: Accounts Receivable, $5,000; Accounts Payable, $6,000; Inventory, $3,000; and Unexpired Insurance, $2,000. The corporation reported profit of $79,000 for the year, including depreciation expense of $5,000, and uses the indirect method of computing net cash from operating activities. Solely on the basis of this information, net cash from operating activities is:

• A) $78,000.
• B) $82,000.
• C) $77,000.
• D) $80,000.

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Definitions:

CPM

Critical Path Method, a project management technique used to plan and control a project by identifying tasks, their durations, and dependencies to calculate the longest path of planned activities to the end of the project.

Beta Distribution

A continuous probability distribution characterized by two shape parameters, used in project planning and Bayesian statistics for modeling variable events.

Cost Estimates

The anticipated expenses involved in completing a project or producing a product, often used for budgeting and planning purposes.

Scheduling

The process of organizing, planning, and allocating resources to tasks over time to achieve efficiency and meet specific objectives, often in production, project management, or service operations.