e 38. Assume a company's net cash provided by operating activities is $86,000. It provided thefollowing excerpts from its balance sheet:Current assets:Accounts receivableInventoryPrepaid expensesCurrent liabilities:Accounts payableAccrued liabilitiesIncome taxes payableA. $53,400.B. $57,400.This YearC. $55,400.D. $51,400.$ 40,000$ 53,000$ 13,000$ 38,000$18,00013,000Last Year$ 46.000$ 50,000$ 11,000Also assume the company incurred a loss on the sale of equipment of $4,000 and thecredits to its accumulated depreciation account are $23,600. Based solely on theinformation provided, the company's net income would be:$ 44,000$ 15,000$ 10,000

A Statement of cash flow is a financial statement that includes the inflow and outflow of cash…

38. Assume a company's net cash provided by operating activities is $86,000. It provided the following excerpts from its balance sheet: Current assets: Accounts receivable Inventory Prepaid expenses Current liabilities: Accounts payable Accrued liabilities Income taxes payable A. $53,400. B. $57,400. This Year $ 40,000 $ 53,000 $ 13,000 C. $55,400. D. $51,400. $ 38,000 $ 18,000 $ 13,000 Last Year $ 46,000 $ 50,000 $ 11,000 Also assume the company incurred a loss on the sale of equipment of $4,000 and the credits to its accumulated depreciation account are $23,600. Based solely on the information provided, the company's net income would be: $ 44,000 $ 15,000 $ 10,000

38. Assume a company's net cash provided by operating activities is $86,000. It provided the following excerpts from its balance sheet: Current assets: Accounts receivable Inventory Prepaid expenses Current liabilities: Accounts payable Accrued liabilities Income taxes payable A. $53,400. B. $57,400. This Year $ 40,000 $ 53,000 $ 13,000 C. $55,400. D. $51,400. $ 38,000 $ 18,000 $ 13,000 Last Year $ 46,000 $ 50,000 $ 11,000 Also assume the company incurred a loss on the sale of equipment of $4,000 and the credits to its accumulated depreciation account are $23,600. Based solely on the information provided, the company's net income would be: $ 44,000 $ 15,000 $ 10,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 13MCQ

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