Balance Sheet Accounts for Hollis, Inc

question 13

Multiple Choice

Balance sheet accounts for Hollis, Inc. contained the following amounts at the ends of years 1 and 2: The company's income statement for year 2 follows: There were no sales or retirements of plant and equipment in Year 2. Cash dividends of $5,000 were paid during Year 2. The company pays no income taxes. The company uses the direct method to determine the net cash provided by operating activities on the statement of cash flows.
-Net cash used for investing activities for Year 2 would be:

• A) $12,000
• B) $21,000
• C) $17,000
• D) $22,000

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Definitions:

Deadweight Losses

Deadweight Losses represent the inefficiency in the market caused by, for example, taxes or monopolies, resulting in a loss of economic efficiency when the optimal quantity of goods or services is not produced.

Cleaner Technologies

Cleaner technologies encompass innovative tools, methods, and practices designed to minimize environmental impact, particularly through reduced pollution and resource consumption.

Private Solutions

Individual or business-driven approaches or measures taken to resolve issues without the need for government intervention.

Externalities

Externalities are the positive or negative effects of economic activities on third parties that are not reflected in the cost of the goods or services involved.