The Change in Each of Kendall Corporation's Balance Sheet Accounts

question 48

Multiple Choice

The change in each of Kendall Corporation's balance sheet accounts last year follows:

Kendall Corporation's income statement for the year was:

There were no sales or retirements of property, plant, and equipment and no dividends paid during the year. The company pays no income taxes and it did not purchase any long-term investments, issue any bonds payable, or repurchase any of its own common stock. The net cash provided by operating activities on the statement of cash flows is determined using the direct method.
-The net cash provided (used) by investing activities would be:

• A)$15,000
• B)$(10,000)
• C)$(8,000)
• D)$5,000

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Definitions:

Budget Deficits

The situation where a government's expenditures exceed its revenues, leading to the accumulation of debt.

Demand-Side Economics

Macroeconomic policy that focuses on shifting the aggregate demand curve as a way of promoting full employment and price stability

Supply-Side Economics

Macroeconomic policy that focuses on a rightward shift of the aggregate supply curve through tax cuts or other changes to increase production incentives.

Classical Economics

A school of thought originating in the 18th century, emphasizing free markets, the idea of a self-regulating economy, and the importance of limited government intervention.