Illies Corporation's Comparative Balance Sheet Appears Below: the Company

question 19

Multiple Choice

Illies Corporation's comparative balance sheet appears below: The company did not dispose of any property,plant,and equipment during the year.Its net income for the year was $5,000 and its cash dividends were $4,000.The company did not issue any bonds payable or purchase any of its own common stock during the year.Its net cash provided by operating activities and net cash used in financing activities are:

• A)net cash provided by operating activities,$33,000;net cash used in financing activities,$1,000
• B)net cash provided by operating activities,$35,000;net cash used in financing activities,$7,000
• C)net cash provided by operating activities,$33,000;net cash used in financing activities,$7,000
• D)net cash provided by operating activities,$35,000;net cash used in financing activities,$1,000

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Definitions:

Inferior Good

A type of good for which demand decreases as the income of consumers increases, opposite to what is observed with normal goods.

Diminishing Marginal Utility

The principle that as a person consumes more of a good, the satisfaction (utility) gained from consuming an additional unit decreases.

Total Satisfaction

The total amount of pleasure or utility that a consumer receives from consuming a certain quantity of goods or services.

Utility-Maximizing

The process of adjusting consumption of goods and services to achieve the highest possible level of satisfaction or utility.