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