Question
Corporation formats operating cash flows using the indirect method. Cramer's Income Statement for 2018 Sales revenue $170,000 Gain on sale of equipment 10,000* $180,000 Cost
Corporation formats operating cash flows using the indirect method.
Cramer's Income Statement for 2018
Sales revenue $170,000
Gain on sale of equipment 10,000* $180,000
Cost of goods sold $110,000
Depreciation 7,500
Other operating expenses 27,000 144,500
Net income $35,500
* The book value of equipment sold during 2018 was $22,000.
Cramer's Comparative Balance Sheets
December 31, 2018 and 2017
2018 2017 2018 2017
Cash $3,500 $2,000 Accounts payable $7,000 $8,000
Accounts receivable 6,000 11,000 Accrued liabilitie 9,000 1,000
Inventory 8,000 7,000 Common stock 20,000 10,000
Plant and equipment, net 89,000 71,000 Retained earnings 70,500 72,000
$106,500 $91,000 $106,500 $91,000
Cramer's net cash provided by operating activities during 2018 was
A.$32,000
B.$33,000.
C.$37,000.
D. $44,000.
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