Exercise $12-8($Algo$)$ Indirect: Inferring net income from operating cash flows LO P$2$

Cain Company reports net cash provided by operating activities of $$40,000.$ It also reports the following information under

"Adjustments to reconcile net income to net cash provided by operating activities" on its statement of cash flows $($using the indirect

method$).$

Gain on sale of equipment

Increase in accounts receivable

Depreciation expense

$$12,000$ Decrease in inventory

$5,000$ Increase in prepaid expenses

$9,000$ Decrease in wages payable

$$8,000$

$6,000$

$5,000$

Determine Cain's net income.