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ABC Manufacturing Inc. Income Statement Year Ended December 31, 204 Sale Cost of goods sold $200,000 $120,000 Gross Profit $ 80,000 Operating Expenses $40,000 Loss
ABC Manufacturing Inc. Income Statement Year Ended December 31, 204 Sale Cost of goods sold $200,000 $120,000 Gross Profit $ 80,000 Operating Expenses $40,000 Loss on Sale of equipment $2,000 $ 42,000 Profit from Operations $ 38,000 Other expenses Interest Expense Profit before Income Tax Income Tax Expense Profit $ 2,000 $ 36,000 $ 8,000 $ 28,000 ABC Manufacturing Inc. comparative balance sheet at December 31 20X4 20X3 Cash Accounts Receivable Inventory Prepaid Expenses Equipment Accumulated Depreciation - equipment Total Assets Account Payable $ 4,500 $ 4,300 $ 72,000 $110,000 $ 1,550 $ 98,000 $(50,000) $236,050 $ 6,500 $140,000 $ 1,020 $100,000 $(42,000) $209,820 $ 15,330 $ $ 9,900 510 $ 10 Interest Payable Income taxes payable Dividends Payable Long-term Notes Payable Common shares Retained Earnings Total Liabilities & Shareholders' Equity $ 10,800 $ $ 1,800 $ 50,000 $130,000 9,500 $ 3,800 $ 65,000 $120,000 $ 27,610 $236,050 $ 1,610 $209,820 Additional Information: 1. Operating expenses include depreciation expense of $10,000 2. Accounts Payable related to the purchase of inventory 3. Equipment that cost $8,000 was sold at a loss of $2,000 4. New equipment was purchased during the year for $6,000 5. Dividends declared and paid in 20X4 totaled $2,000 6. Common shares were sold for $10,000 cash 7. Interest payable in 20X4 was $500 greater than interest payable in 20X3 What is the Net Cash provided (used) by Operations when the indirect method to prepare cash flow statements is use? Assume the company uses ASPE. Multiple Choice None of the other alternatives are correct $13,200 $11,200 C $6,300 $8,100
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