Mori Company”s net income last year was $25,000 and cash dividends declared and paid to the company”s stockholders totaled $10,000. Changes in selected balance sheet accounts for the year appear below:
|
|
Increases |
|
|
(Decreases) |
|
Debit balances: |
|
|
Accounts receivable |
$(6,000) |
|
Inventory |
$2,000 |
|
Prepaid expenses |
$(1,000) |
|
Long term investments |
$20,000 |
|
Credit balances: |
|
|
Accumulated depreciation |
$12,000 |
|
Accounts payable |
$9,000 |
|
Taxes payable |
$(5,000) |
Based solely on this information, the net cash provided by operations under the indirect method on the statement of cash flows would be:
A) $46,000
B) $4,000
C) $36,000
D) $37,000