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:

Business Networks

Formal or informal associations of businesses or professionals aimed at building relationships to support and grow their operations.

Line Management

Managers directly responsible for the production and delivery of a company's products or services.

Staff Management

The function of leading, organizing, and supervising employees to achieve organizational goals efficiently and effectively.

Indirect Responsibilities

Duties or obligations not directly tied to one's primary job function but essential for supporting broader organizational goals.