Question
Knowledge Check 01 Freemont Company's Accounts Receivable decreased by $4,000 and its Inventory decreased by $3,000 during the year. Which of the following is the
Knowledge Check 01
Freemont Company's Accounts Receivable decreased by $4,000 and its Inventory decreased by $3,000 during the year. Which of the following is the correct treatment within the operating activities section of the statement of cash flows using the indirect method?
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The change in Accounts Receivable is added to net income; the change in Inventory is added to net income.
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The change in Accounts Receivable is subtracted from net income; the change in Inventory is added to net income.
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The change in Accounts Receivable is added to net income; the change in Inventory is subtracted from net income.
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The change in Accounts Receivable is subtracted from net income; the change in Inventory is subtracted from net income.
Knowledge Check 02
Freemont Company's Accounts Payable decreased by $4,000 and its Income Taxes Payable increased by $3,000 during the year. Which of the following is the correct treatment within the operating activities section of the statement of cash flows using the indirect method?
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The change in Accounts Payable is added to net income; the change in Income Taxes Payable is added to net income.
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The change in Accounts Payable is added to net income; the change in Income Taxes Payable is subtracted from net income.
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The change in Accounts Payable is subtracted from net income; the change in Income Taxes Payable is added to net income.
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The change in Accounts Payable is subtracted from net income; the change in Income Taxes Payable is subtracted from net income.
Knowledge Check 03
Duffy Inc., had net income of $95,000 for the year just ended. Duffy collected the following additional information to prepare its statement of cash flows for the year. Accounts Receivable increased by $191,000, Inventory decreased by $32,000, Accounts Payable decreased by $49,000, and Depreciation charges amounted to $46,000. Duffy uses the indirect method to prepare its statement of cash flows. What is Duffy's net cash provided by (used in) operating activities?
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$55,000
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$(67,000)
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$227,000
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$321,000
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