Examlex

Solved

Assuming Net Income for the Year Is $115,000,what Is the Net

question 34

Multiple Choice

Assuming Net Income for the year is $115,000,what is the net operating cash flows given the following information:  Increase in Salaries Payable $16,000 Depreciation Expense $6,000 Increase in Prepaid Rent $24,000 Loss on sale of asset $1,000 Increase in Accounts Payable $25,000 Increase in Inventory $50,000\begin{array} { | l | r | } \hline \text { Increase in Salaries Payable } & \$ 16,000 \\\hline \text { Depreciation Expense } & \$ 6,000 \\\hline \text { Increase in Prepaid Rent } & \$ 24,000 \\\hline \text { Loss on sale of asset } & \$ 1,000 \\\hline \text { Increase in Accounts Payable } & \$ 25,000 \\\hline \text { Increase in Inventory } & \$ 50,000 \\\hline\end{array}


Definitions:

Preliminary Registration Statement

A document submitted to regulatory authorities prior to a securities offering that provides details about the offering and the issuer.

Exchange

A marketplace where securities, commodities, derivatives, and other financial instruments are traded.

Rate of Return

The percentage gain or loss on an investment over a specified period, expressing the compound annual growth rate.

Initial Margin

The minimum amount of equity required to initiate a position in the securities market, often expressed as a percentage of the total investment.

Related Questions