Royal Corporation Uses the Indirect Method of Computing Net Cash

question 11

Multiple Choice

Royal Corporation uses the indirect method of computing net cash flow from operating activities and reported the following for 2015: accounts receivable decreased by $10,300,merchandise inventory increased by $15,300,accounts payable decreased by $4,000,and income taxes payable increased by $18,800.If Royal Corporation reported net income for 2015 of $157,800 (including $34,800 of depreciation expense) ,net cash flow from operating activities for 2015 is:

• A)$202,400.
• B)$132,800.
• C)$164,800.
• D)$221,700.

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Definitions:

Reciprocal Obligations

Mutual expectations and duties between two parties, especially in a work environment where employees and employers depend on each other's actions.

Psychological Contract

The unwritten set of expectations between an employer and an employee regarding mutual obligations.

Unrealistically Low Expectations

Expectations that are set significantly below a realistic assessment of achievable outcomes, often leading to underperformance or missed opportunities.

Psychological Contract Breach

The perception that an employer has failed to fulfill one or more unwritten expectations of the employment relationship.