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Consider the Following Information The Company Would Report a Net Cash Inflow from Operating

Question 71

Multiple Choice

Consider the following information:  Net income 20,000 Depreciation 3,000 Increase (decrease)  in accounts receivable 1,000 Increase (decrease)  in prepaid rent (400)  Increase (decrease)  in accrued Liabilities 900 Cash paid to purchase office equipment 4,000\begin{array} { | l | r | } \hline \text { Net income } & \mathbf { 2 0 } , 000 \\\hline \text { Depreciation } & \mathbf { 3 } , 000 \\\hline \text { Increase (decrease) in accounts receivable } & 1,000 \\\hline \text { Increase (decrease) in prepaid rent } & ( 400 ) \\\hline \text { Increase (decrease) in accrued Liabilities } & 900 \\\hline \text { Cash paid to purchase office equipment } & 4,000 \\\hline\end{array} The company would report a net cash inflow from operating activities of:


A) $17,500.
B) $18,500.
C) $21,500.
D) $23,300.

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