Assuming Net Income for the Year Is $115,000, What Is

question 95

Multiple Choice

Assuming Net Income for the year is $115,000, what is the Operating Cash Flows given the following information: $$\begin{array} { l r } \text { Increase in Salaries Payable } & \$ 15,000 \\\text { Depreciation Expense } & \$ 6,000 \\\text { Increase in Prepaid Rent } & \$ 24,000 \\\text { Loss on sale of asset } & \$ 1,000 \\\text { Increase in Accounts Payable } & \$ 25,000 \\\text { Increase in Inventory } & \$ 50,000\end{array}$$

• A) $112,000.
• B) $88,000.
• C) $118,000.
• D) $188,000.

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Definitions:

Wages

Compensation received by employees for services performed. Typically, it refers to monetary earnings per hour or per piece of work completed.

Understatement

The act of reporting less income or fewer assets than actually exist, often resulting in a lower tax liability but potentially leading to penalties if deliberate.

Fraud

An intentional deception made for personal gain or to damage another individual.

25%

A rate or portion equal to one fourth or 25 out of 100 parts in a given context, often related to taxes, discounts, or interest rates.