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The following information was obtained from Georgia Companys comparative balance sheets. Assume that Georgia Companys 2017 income statement showed depreciation expense of $4,000, a gain

The following information was obtained from Georgia Companys comparative balance sheets. Assume that Georgia Companys 2017 income statement showed depreciation expense of $4,000, a gain on sale of investments of $10,000, and a net income of $50,000.

Dec. 31, 2017

Dec. 31, 2016

Cash

$ 20,000

$ 10,000

Accounts receivable

40,000

37,000

Inventory

50,000

45,000

Prepaid rent

5,000

7,000

Long-term investments

20,000

34,000

Plant assets

150,000

100,000

Accumulated depreciation

50,000

46,000

Accounts payable

25,000

20,000

Income tax payable

5,000

6,000

Common stock

121,000

100,000

Retained earnings

84,000

61,000

Calculate the net cash flow from operating activities using the indirect method.

Select one:

A. $42,000

B. $52,000

C. $43,000

D. $34,000

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