Salsedo Corporation's Balance Sheet and Income Statement Appear Below

question 104

Multiple Choice

Salsedo Corporation's balance sheet and income statement appear below: Cash dividends were $9.The company sold equipment for $15 that was originally purchased for $10 and that had accumulated depreciation of $5.It did not issue any bonds payable or repurchase any of its own common stock. The net cash provided by (used in) operating activities for the year was:

• A)$60
• B)$95
• C)$94
• D)$85

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Definitions:

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a person’s mind when evaluating a specific topic, concept, method, or decision.

Muggings

Acts of attacking someone with the intent to rob them, often using violence or the threat of violence.

Heuristics

Simple, efficient rules, either hard-coded by evolutionary processes or learned, that help in making decisions, forming judgments, or solving problems.

System II Strategies

Cognitive processes associated with analytical thinking that are deliberate, controlled, and typically require conscious effort, as opposed to intuitive or automatic System I processes.