Morgan Company”s net income last year was $73,000 and cash dividends declared and paid to the company”s stockholders totaled $14,000. Changes in selected balance sheet accounts for the year appear below:
|
|
Increases |
|
|
(Decreases) |
|
Debit balances: |
|
|
Accounts receivable |
$10,000 |
|
Prepaid expenses |
$(3,000) |
|
Credit balances: |
|
|
Accumulated depreciation |
$16,000 |
|
Accounts payable |
$(4,000) |
|
Bonds payable |
$80,000 |
Based solely on this information, the net cash provided by operations under the indirect method on the statement of cash flows would be:
A) $89,000
B) $78,000
C) $68,000
D) $154,000