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Exhibit 22-2 the Rollins Corporation Reported $11, 000 of Net

Question 27

Multiple Choice

Exhibit 22-2 The Rollins Corporation reported $11, 000 of net income for the current year.The following additional information relates to Rollins for the year:
Subsidiary gain included in investment income under the equity method$370Decrease in inventory80Lose on disunsal of eauirment900 Proceeds from disposal of equipment 1,400 Depreciation expense 1,200 Acquisition of treasury stock 650 Increase in ac counts payable 290 Acquisition of new securities (accounted for using the  ecquity method)  500 Decrease in deferred income taxes 210 Early retirement of bonds payable at book value 1,000 Increace in interect receivahle 3n\begin{array}{ll}\text {Subsidiary gain included in investment }\\\text {income under the equity method}& \$ 370\\\text {Decrease in inventory}&80\\\text {Lose on disunsal of eauirment}&900\\\text { Proceeds from disposal of equipment } & 1,400 \\\text { Depreciation expense } & 1,200 \\\text { Acquisition of treasury stock } & 650 \\\text { Increase in ac counts payable } & 290 \\\text { Acquisition of new securities (accounted for using the } &\\\text { ecquity method) } & 500 \\\text { Decrease in deferred income taxes } & 210 \\\text { Early retirement of bonds payable at book value } & 1,000 \\\text { Increace in interect receivahle } & 3 n\end{array}


-Refer to Exhibit 22-2.What is Rollins' net cash provided by investing activities?


A) $ 250
B) $ 900
C) $2, 170
D) $3, 370

Correct Answer:

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