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Use the Indirect Method to Answer Questions the Following Information

Question 26

Multiple Choice

Use the indirect method to answer questions The following information is available for Felix Company:
 Net income $300 Decrease in plant and equip. $40 Depreciation expense 20 Increase in deferred tax asset 5 Gain on sale of assets 35 Decrease in long-term debt 50 Increase in inventories 25 Decrease in accounts payable 15\begin{array} { l r l r } \text { Net income } & \$ 300 & \text { Decrease in plant and equip. } & \$ 40 \\\text { Depreciation expense } & 20 & \text { Increase in deferred tax asset } & 5 \\\text { Gain on sale of assets } & 35 & \text { Decrease in long-term debt } & 50 \\\text { Increase in inventories } & 25 & \text { Decrease in accounts payable } & 15\end{array}
-What is the change in cash for Felix Company?


A) $310
B) $205
C) $330
D) $230

Correct Answer:

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