Nornang Company”s net income last year was $47,000. Changes in selected balance sheet accounts for the year appear below:
|
|
Increases |
|
|
(Decreases) |
|
Debit balances: |
|
|
Accounts receivable |
$(13,000) |
|
Inventory |
$15,000 |
|
Prepaid expenses |
$4,000 |
|
Credit balances: |
|
|
Accumulated depreciation |
$32,000 |
|
Accounts payable |
$(13,000) |
|
Accrued liabilities |
$8,000 |
|
Taxes payable |
$9,000 |
|
Deferred taxes |
$0 |
Based solely on this information, the net cash provided by operations under the indirect method on the statement of cash flows would be:
A) $77,000
B) $89,000
C) $79,000
D) $17,000