If a Firm Has Net Sales of $30,000, Cash Expenses

question 31

Multiple Choice

If a firm has net sales of $30,000, cash expenses including taaxes of $14,000 and depreciation of $5,000, what are the cash flows from operations if accounts receivable increase by $4,000 over the latest period?

• A) $10,000
• B) $11,000
• C) $12,000
• D) $12,500

---

Definitions:

Asset Accounts

Accounts that represent resources owned or controlled by a company from which future economic benefits are expected to flow to the company.

Factory Equipment

These are fixed assets used in the production process to manufacture goods, including machinery, tools, and vehicles.

Total Assets

Total assets represent the sum of everything of value owned by a company, including cash, investments, property, and equipment.

Current Stockholders' Equity

The total value of all shareholders' interests in a company, based on current financial statement data.