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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Batra Company prepares the statement of
|
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 |
|
|
|
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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