Homework answers / question archive / Which of the following statements is true? Norton Company reported total sales revenue of $55,000, total expenses of $45,000, and net income of $10,000 on its income statement for the year ended December 31, 2010

Which of the following statements is true? Norton Company reported total sales revenue of $55,000, total expenses of $45,000, and net income of $10,000 on its income statement for the year ended December 31, 2010

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1. Which of the following statements is true?
2. Norton Company reported total sales revenue of $55,000, total expenses of $45,000, and net income of $10,000 on its income statement for the year ended December 31, 2010.
   
   During 2010, accounts receivable decreased by $4,000, merchandise inventory decreased by $6,000, accounts payable increased by $2,000, and depreciation of $8,000 was recorded.
   
   Therefore, based only on this information, the net cash flow from operating activities using the indirect method for 2010 was:
3. Bankers Company reported net income of $40,000, which included depreciation expense and depletion expense of $21,000 and $18,000, respectively.
   
   The following changes also occurred during 2010:
   
   Inventory $10,000 decrease
   Accounts payable 5,000 decrease
   Notes payable (long-term) 15,000 decrease
   Income taxes payable 7,000 increase
   Accounts receivable 10,000 increase
   
   What is the cash flow from operating activities?