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:

Domestically

Pertaining to or occurring within a country's borders; not foreign or international.

Worldwide

Pertains to activities or operations that are carried out on a global scale, affecting or involving people from all over the world.

Services

Activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.

World Trade Organization

An international organization designed to supervise and liberalize world trade by providing a forum for negotiation and dispute resolution.