Norman Company”s net income last year was $26,000. Changes in selected balance sheet accounts for the year appear below:
|
|
Increases |
|
|
(Decreases) |
|
Debit balances: |
|
|
Accounts receivable |
$8,000 |
|
Inventory |
$12,000 |
|
Prepaid expenses |
$(6,000) |
|
Credit balances: |
|
|
Accumulated depreciation |
$24,000 |
|
Accounts payable |
$(15,000) |
|
Accrued liabilities |
$9,000 |
|
Taxes payable |
$0 |
|
Deferred taxes |
$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) $50,000
B) $35,000
C) $17,000
D) $63,000