The following information on selected transactions for 2007 has been provided by the Smith Company:
|
Net income |
$20,000,000 |
|
Proceeds from short term borrowings |
1,200,000 |
|
Proceeds from long term borrowings |
4,000,000 |
|
Purchases of fixed assets |
3,200,000 |
|
Decrease in inventories |
8,000,000 |
|
Proceeds from sale of Smith’s common stock |
2,000,000 |
|
Depreciation expense |
500,000 |
What is the net increase in cash for the year ended December 31, 2007 as a result of the preceding information?
a. $32,500,000
b. $25,700,000
c. $16,500,000
d. $12,500,000