The following information was obtained from Galena Companys comparative balance sheets.

Assume that Galena Companys 2016 income statement showed depreciation expense of $8,000, a

gain on sale of investments of $9,000, and net income of $45,000. Calculate the net cash ow from

operating activities using the indirect method.

FIRST COLUMN:Dec.31 2016 SECOND COLUMN: Dec 31. 2015

Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 19,000 $ 9,000

Accounts receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $44,000 $35,000

Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $55,000 $49,000

Prepaid rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,000 $8,000

Long-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $21,000 $34,000

Plant assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $150,000 $106,000

Accumulated depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $40,000 $32,000

Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $24,000 $20,000

Income tax payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,000 $6,000

Common stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $121,000 $92,000

Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $106,000 $91,000