Question
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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started