The Comparative Balance Sheets of Apollo Rocket,Inc

question 57

Multiple Choice

The comparative balance sheets of Apollo Rocket,Inc.show a net increase in inventory of $79,000 and a net decrease in accounts payable of $42,000 during 2015.In computing net cash flow from operating activities under the indirect method,net income for 2015 should be:

• A)Increased by $37,000.
• B)Reduced by $37,000.
• C)Increased by $121,000.
• D)Reduced by $121,000.

---

Definitions:

Producers

Individuals or companies that create goods or services for sale or exchange.

Excise Tax

A tax imposed on specific goods, services, or transactions, often aimed at discouraging their use or raising government revenue.

Consumers

Individuals or entities that purchase goods or services for personal use and not for manufacture or resale.

Producers

Entities or individuals involved in the creation of goods or services for the market.