An Analyst Compiled the Following Information for U Inc

question 21

Multiple Choice

An analyst compiled the following information for U Inc. for the year ended December 31, 2013: ▪ Net income was $1,700,000.
▪ Depreciation expense was $400,000.
▪ Interest paid was $200,000.
▪ Income taxes paid were $100,000.
▪ Common stock was sold for $200,000.
▪ Preferred stock (8% annual dividend) was sold at par value of $250,000.
▪ Common stock dividends of $50,000 were paid.
▪ Preferred stock dividends of $20,000 were paid.
▪ Equipment with a book value of $100,000 was sold for $200,000.
Using the indirect method, what was U Inc.'s net cash flow from operating activities for the year ended December 31, 2013?

• A)$2,000,000.
• B)$2,030,000.
• C)$2,080,000.
• D)$2,100,000.

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Definitions:

Collaboration

The act of working together with one or more people in order to achieve a common goal, often involving shared decision-making and problem-solving.

Thinking

The process of considering or reasoning about something, often involving the mental manipulation of information to form ideas, decisions, and memories.

Doing

Engaging in activities or actions with a specific aim or purpose, often connoting productivity or achievement.

Caring

The act of providing attention, compassion, and support to others, especially in health contexts.