Use the Following Information and the Indirect Method to Calculate

question 95

Multiple Choice

Use the following information and the indirect method to calculate the net cash provided or used by operating activities: Income before taxes…………………………………………… $14,000
Depreciation expense..………………………………………… 12,000
Payment on mortgage payable………………………………… 15,000
Gain on sale of land…………………………………………… 7,500
Increase in merchandise inventory……………………………. 2,050
Increase in accounts payable………………………………….. 6,150
Proceeds from sale of land……………………………………. 8,000
Income taxes paid……………………………………………... 1,700

• A) $12,700.
• B) $13,900.
• C) $20,900.
• D) $28,400.
• E) $35,900.

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Definitions:

Indifference Curves

Graphs representing combinations of goods among which a consumer is indifferent, showing trade-offs in consumption preferences.

Marginal Utility

The extra pleasure or advantage obtained from using an additional unit of a product or service.

Total Utility

The total satisfaction received from consuming a given total quantity of a good or service.

Clothing

Clothing refers to items worn on the body, typically made from fabrics or textiles, but can include garments made from animal skin or other thin sheets of materials put together, serving to protect, adorn, or fulfill social and cultural expressions.