Assume a company had net income of $79,000 that included a gain on the sale of equipment of $4,000. It provided the following excerpts from its balance sheet: This Year Last Year Current assets: Accounts receivable $ 40,000 $ 46,000 Inventory $ 53,000 $ 50,000 Prepaid expenses $ 13,000 $ 11,000 Current liabilities: Accounts payable $ 38,000 $ 44,000 Accrued liabilities $ 18,000 $ 15,000 Income taxes payable $ 13,000 $ 10,000 If the credits to the company’s accumulated depreciation account were $21,000, then based solely on the information provided, the company’s net cash provided by (used in) operating activities would be: Multiple Choice $63,000. $55,000. $105,000. $97,000.
Assume a company had net income of $79,000 that included a gain on the sale of equipment of $4,000. It provided the following excerpts from its balance sheet: This Year Last Year Current assets: Accounts receivable $ 40,000 $ 46,000 Inventory $ 53,000 $ 50,000 Prepaid expenses $ 13,000 $ 11,000 Current liabilities: Accounts payable $ 38,000 $ 44,000 Accrued liabilities $ 18,000 $ 15,000 Income taxes payable $ 13,000 $ 10,000 If the credits to the company’s accumulated depreciation account were $21,000, then based solely on the information provided, the company’s net cash provided by (used in) operating activities would be: Multiple Choice $63,000. $55,000. $105,000. $97,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assume a company had net income of $79,000 that included a gain on the sale of equipment of $4,000. It provided the following excerpts from its
| This Year | Last Year | |
|---|---|---|
| Current assets: | ||
| $ 40,000 | $ 46,000 | |
| Inventory | $ 53,000 | $ 50,000 |
| Prepaid expenses | $ 13,000 | $ 11,000 |
| Current liabilities: | ||
| Accounts payable | $ 38,000 | $ 44,000 |
| Accrued liabilities | $ 18,000 | $ 15,000 |
| Income taxes payable | $ 13,000 | $ 10,000 |
If the credits to the company’s
Multiple Choice
-
$63,000.
-
$55,000.
-
$105,000.
-
$97,000.
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