Empire Company Uses the Indirect Method to Prepare Its Statement

question 123

Multiple Choice

Empire Company uses the indirect method to prepare its statement of cash flows. The following information has been gathered for the current period: $\begin{array}{|l|r|}\hline \text { Gain on sale of land } & \$ 1,500,000 \\\hline \text { Profit for the year } & \$ 30,900,000 \\\hline \text { Depreciation expense } & \$ 6,800,000 \\\hline \text { Cash received from sale of land } & \$ 7,000,000 \\\hline \text { Decrease in accounts receivable } & \$ 1,700,000 \\\hline \text { Increase in inventory } & \$ 2,200,000 \\\hline \text { Decrease in accounts payable } & \$ 2,900,000 \\\hline \text { Dividend paid } & \$ 8,800,000\\\hline\end{array}$ Solely on the basis of the above information, Empire's net cash from operating activities is:

• A) $33,800,000.
• B) $42,800,000.
• C) $35,500,000.
• D) $34,300,000.

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Definitions:

Hierarchy Of Goals

A system of organizing objectives that range from high-level, long-term goals to lower-level, short-term actions, enabling structured pursuit of ambitions.

Distal Goals

Long-term objectives or aims that are not immediately achievable, requiring extended effort and planning.

Proximal Goals

Short-term goals that are set as steps towards a longer-term goal, making it easier to track progress and maintain motivation.

Demands Upon Themselves

The expectations or pressures individuals put on themselves, either to achieve certain goals or adhere to specific standards.