At the End of the First Year of Operations,the Balance

question 60

Multiple Choice

At the end of the first year of operations,the balance sheet of Midwood Medical Supply showed the following account balances: Accounts Receivable,$5,000;Accounts Payable,$6,000;Inventory,$3,000;and Unexpired Insurance,$2,000.The corporation reported net income of $79,000 for the year,including depreciation expense of $5,000,and uses the indirect method of computing net cash flow from operating activities.Solely on the basis of this information,net cash flow from operating activities is:

• A)$78,000.
• B)$82,000.
• C)$77,000.
• D)$80,000.

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Definitions:

Budget Constraint

The limitation on the consumption patterns of individuals or entities based on their income and the prices of goods and services.

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Specific locations identified on a graph or line that represent data points or positions related to a particular value.

Budget Constraint

An economic model that shows the combination of goods and services a consumer can purchase with a given income.

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Compact Discs, an optical storage medium used to store digital data including music, which has largely been replaced by digital downloads and streaming services.