38. Assume a company's net cash provided by operating activities is $86,000. It provided the following excerpts from its balance sheet: Current assets: Accounts receivable Inventory Prepaid expenses Current liabilities: Accounts payable Accrued liabilities Income taxes payable A. $53,400. B. $57,400. This Year $ 40,000 $ 53,000 $ 13,000 C. $55,400. D. $51,400. $ 38,000 $ 18,000 $ 13,000 Last Year $ 46,000 $ 50,000 $ 11,000 Also assume the company incurred a loss on the sale of equipment of $4,000 and the credits to its accumulated depreciation account are $23,600. Based solely on the information provided, the company's net income would be: $ 44,000 $ 15,000 $ 10,000
38. Assume a company's net cash provided by operating activities is $86,000. It provided the following excerpts from its balance sheet: Current assets: Accounts receivable Inventory Prepaid expenses Current liabilities: Accounts payable Accrued liabilities Income taxes payable A. $53,400. B. $57,400. This Year $ 40,000 $ 53,000 $ 13,000 C. $55,400. D. $51,400. $ 38,000 $ 18,000 $ 13,000 Last Year $ 46,000 $ 50,000 $ 11,000 Also assume the company incurred a loss on the sale of equipment of $4,000 and the credits to its accumulated depreciation account are $23,600. Based solely on the information provided, the company's net income would be: $ 44,000 $ 15,000 $ 10,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:38. Assume a company's net cash provided by operating activities is $86,000. It provided the
following excerpts from its balance sheet:
Current assets:
Accounts receivable
Inventory
Prepaid expenses
Current liabilities:
Accounts payable
Accrued liabilities
Income taxes payable
A. $53,400.
B. $57,400.
This Year
C. $55,400.
D. $51,400.
$ 40,000
$ 53,000
$ 13,000
$ 38,000
$
18,000
13,000
Last Year
$ 46.000
$ 50,000
$ 11,000
Also assume the company incurred a loss on the sale of equipment of $4,000 and the
credits to its accumulated depreciation account are $23,600. Based solely on the
information provided, the company's net income would be:
$ 44,000
$ 15,000
$ 10,000
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