Royal Corporation Uses the Indirect Method of Computing Net Cash

question 59

Multiple Choice

Royal Corporation uses the indirect method of computing net cash flow from operating activities and reported the following for 2018: Accounts receivable decreased by $10,300,merchandise inventory increased by $15,300,accounts payable decreased by $4,000,and income taxes payable increased by $18,800.If Royal Corporation reported net income for 2018 of $157,800 (including $34,800 of depreciation expense) ,net cash flow from operating activities for 2018 is:

• A)$202,400.
• B)$132,800.
• C)$164,800.
• D)$221,700.

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Definitions:

Peripheral Nervous Systems

The portion of the nervous system consisting of nerves and ganglia outside of the brain and spinal cord, connecting the limbs and organs to the central nervous system.

Central

Pertaining to the most important or core part of something, often indicating its significance or pivotal role.

Somatic Nervous System

Division of the peripheral nervous system that controls skeletal muscles and relays sensory signals about movements and external conditions.

Skeletal Muscles

Muscles attached to the bones of the skeleton, responsible for voluntary movements of the body.