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Assume a merchandising company reported the following income statement: Sales $ 300,000 Cost of goods sold 180,000 Gross margin 120,000 Selling and administrative expenses 80,000
Assume a merchandising company reported the following income statement:
Sales | $ 300,000 |
---|---|
Cost of goods sold | 180,000 |
Gross margin | 120,000 |
Selling and administrative expenses | 80,000 |
Net income before taxes | 40,000 |
Income tax expense | 12,000 |
Net income | $ 28,000 |
Selected balance sheet accounts are as follows:
Beginning Balance | Ending Balance | |
---|---|---|
Current Assets | ||
Accounts receivable | $ 60,000 | $ 62,400 |
Inventory | $ 30,000 | $ 28,000 |
Prepaid expenses | $ 8,000 | $ 6,000 |
Current Liabilities | ||
Accounts payable | $ 10,000 | $ 13,000 |
Accrued liabilities | $ 7,000 | $ 6,000 |
Income taxes payable | $ 4,000 | $ 4,000 |
If the companys selling and administrative expense includes $16,000 of depreciation, then what is the net cash provided by operating activities?
Multiple Choice
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$47,600.
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$7,600.
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$19,600.
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$8,400.
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