Felix Skateboards Company uses the indirect method to prepare the statement of c
ID: 2528629 • Letter: F
Question
Felix Skateboards Company uses the indirect method to prepare the statement of cash flows. Refer to the following income statement:
Felix Company
Income Statement
Year Ended December 31, 2017
Sales Revenue
$246,000
Interest Revenue
2,600
Gain on Sale of Plant Assets
5,500
Total Revenues and Gains
$254,100
Cost of Goods Sold
119,000
Salary Expense
44,000
Depreciation Expense
14,000
Other Operating Expenses
21,000
Interest Expense
1,900
Income Tax Expense
5,500
Total Expenses
205,400
Net Income (Loss)
$48,700
Additional information provided by the company includes the following:
1. Current assets, other than cash, increased by $21,000.
2. Current liabilities decreased by $1,500.
Compute the net cash provided by (used for) operating activities.
A.
$40,200
B.
$26,200
C.
$12,500
D.
$34,7
Explanation / Answer
Computation of the net cash provided by? (used for) operating activities. Net income / (loss) $48,700.00 Depreciation $14,000.00 Gain on Sale of Plant Assets -$5,500.00 Increase in current assets -$21,000.00 Decrease in current liabilities -$1,500.00 Net cash provided by operating activities $34,700.00 The answer is Option D.
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