Castine Reports Net Income of $305,000 for the Year Ended

question 167

Multiple Choice

Castine reports net income of $305,000 for the year ended December 31,Year 2.It also reports $93,700 depreciation expense and a $10,000 loss on the sale of equipment.Its comparative balance sheet reveals a $40,200 increase in accounts receivable,a $10,200 decrease in prepaid expenses,a $15,200 increase in accounts payable,a $12,500 decrease in wages payable,and a $100,000 decrease in notes payable.Calculate the new cash provided (used) in operating activities using the indirect method.

• A)$461,800.
• B)$371,400.
• C)$381,400.
• D)$351,000.
• E)$361,000.

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Definitions:

Sensitive

Quick to detect or respond to slight changes, signals, or influences.

Standard Deviation

A statistic that measures the dispersion or variability of a dataset relative to its mean, often used in finance to represent the volatility of an investment.

Correlation

A numeric value showing how much two or more variables change in connection with one another.

Beta

A rephrased definition: A statistical measure reflecting the relationship between the stock price movements of an individual company and those of the entire market.