The following income statement was drawn from the income statement of Gibbons Company for its first year of operations:

Cash revenue	$	77,000
Depreciation expense		23,400
Accrued interest expense		9,400
Cash operating expense		27,400
Operating income		16,800
Gain on the sale of equipment		4,600
Net income	$	21,400

Using the direct method, the net cash flow from operating activities equals:

Multiple Choice

• $54,200.

• $32,800.

• $49,600.

• $28,200.