6. Use this balance sheet and income statement to answer the following question. Use ending whenever average balances are required for computing ratios. Abner Systems Balance Sheet December 31, 2010 Assets Current assets Liabilities $ 6,000 Current liabilities 4,000 Investments 1,000 Long-term liabilities 8,000 Property, plant, and equipment Intangible assets Total liabilities s 5,000 5.000 Owner's Equity 15.000 Dale Abner, Capital Total liabilities and owner's equity Total assets $20,000 Abner Systems Income Statement For the Year Ended December 31, 2010 $24,000 8.00 $16,000 Net sales Cost of goods sold Gross margin Operating expenses Net income The total amount of working capital for Abner Systems is a. $0. b. $6,000. c. $2,000. d. $10,000. What is the effect of Depreciation Expense on the Statement of Cash Flows? Add to cash payment for expenses to arrive at net cash flows from operating activities Subtract from cash payments for expenses to arrive at net cash flows from operating 3 7. a. b. activities c. Subtract from cash payments for purchasses to arrive at net cash flows from operating activitis d. Not used to adjust net income to calculate net cash flows from operating activities 7