Batra Company prepares the statement of cash flows using the indirect method and provided the following income statement: Sales revenue Interest revenue Gain on sale of plant assets Total revenues and gains Cost of goods sold Salary expense Depreciation expense Other operating expenses Interest expense Income tax expense Total expenses Net income (loss) Other information provided: $240,000 1,000 4,000 110,000 45,000 12,000 23,000 1,000 5,000 a. $32,000 positive O b. $34,000 positive O c. $20,000 positive O d. $75,000 positive $245,000 $196,000 $49,000 Current assets other than cash increase by $24,000. Current liabilities increase by $1,000. How much is the Net cash flow provided by operations?

Batra Company prepares the statement of cash flows using the indirect method and provided the following income statement: Sales revenue Interest revenue Gain on sale of plant assets Total revenues and gains Cost of goods sold Salary expense Depreciation expense Other operating expenses Interest expense Income tax expense Total expenses Net income (loss) Other information provided: $240,000 1,000 4,000 110,000 45,000 12,000 23,000 1,000 5,000 a. $32,000 positive O b. $34,000 positive O c. $20,000 positive O d. $75,000 positive $245,000 $196,000 $49,000 Current assets other than cash increase by $24,000. Current liabilities increase by $1,000. How much is the Net cash flow provided by operations?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Batra Company prepares the statement of cash flows using the indirect method and provided the following income statement: Sales revenue $240,000 Interest revenue 1,000 Gain on sale of plant assets 4,000 Total revenues and gains $245,000 Cost of goods sold 110,000 Salary expense 45,000 Depreciation expense 12,000 Other operating expenses 23,000 Interest expense 1,000 Income tax expense 5,000 Total expenses $196,000 Net income (loss) $49,000 Other information provided: Current assets other than cash increase by $24,000. Current liabilities increase by $1,000. How much is the Net cash flow provided by operations? a. $20,000 positive b. $32,000 positive c. $34,000 positive d. $75,000 positive
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