Royal Corporation Uses the Indirect Method of Computing Net Cash

question 144

Multiple Choice

Royal Corporation uses the indirect method of computing net cash from operating activities and reported the following for 2014: accounts receivable decreased by $10,300, inventory increased by $15,300, accounts payable decreased by $4,000, and income taxes payable increased by $18,800. If Royal Corporation reported profit for 2014 of $157,800 (including $34,800 of depreciation expense) , net cash from operating activities for 2014 is:

• A) $202,400.
• B) $132,800.
• C) $164,800.
• D) $221,700.

---

Definitions:

Law of Supply

The law of supply states that, all else being equal, an increase in the price of a good or service will lead to an increase in the quantity supplied, and vice versa, reflecting producers' responsiveness to price changes.

Car Production Technology

The set of engineering practices, methodologies, and innovations used in the design and manufacturing of automobiles.

Leather

Leather is a durable and flexible material created by tanning animal rawhide and skins, primarily used in the production of goods like clothing, footwear, and furniture.

Sweater Producers

Entities or individuals involved in the manufacturing or creation of sweaters.