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

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Definitions:

Interval Data

A type of data measurement that not only keeps order but also has consistent differences between consecutive values, without a true zero point.

Ordinal Data

Data that represent order or ranking among categories but do not quantify the difference between categories, such as educational levels or satisfaction ratings.

Ranking Procedure

A ranking procedure is a statistical method used to assign ranks to various items or entities based on certain attributes or measurements.

Analysis of Variance (ANOVA)

A statistical method used to test the difference between two or more means by analyzing variances.