Gregor Company Reports Net Income of $305,000 for the Year

question 148

Multiple Choice

Gregor Company reports net income of $305,000 for the year ended December 31.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 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:

Trichromatic Theory

A theory explaining how the human eye perceives color through the response of three types of cones sensitive to red, green, and blue light.

Dichromatic Theory

A hypothesis in color vision proposing that two types of color receptors (cones) in the eyes are responsible for color perception.

Lateral Geniculate Nucleus

A structure in the thalamus that acts as a relay center for visual information received from the retina to the visual cortex.

Trichromatic Theory

A theory explaining the color vision process in humans, suggesting that the retina contains three types of color receptors sensitive to different wavelengths: red, green, and blue.