Moretta Company”s net income last year was $32,000 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

$7,000

Inventory

$(4,000)

Prepaid expenses

$(1,000)

Long term investments

$8,000

Credit balances:

 

Accumulated depreciation

$17,000

Accounts payable

$(6,000)

Taxes payable

$7,000

Based solely on this information, the net cash provided by operations under the indirect method on the statement of cash flows would be:

A) $24,000

B) $36,000

C) $16,000

D) $48,000