Creble Company reported net income for 2018 in the amount of $40,000. The company's financial statements also included the following: $\begin{array}{lll}
\text {Increase in accounts receivable }&\$4,000\
\text {Decrease in inventory }&2,000\
\text {Depreciation expense }&3,000\
\text {Gain on sale of equipment }&5,000\
\end{array}$
In the statement of cash flows what is net cash provided by operating activities under the indirect method?
A) $36,000.
B) $41,000.
C) $40,000.
D) $38,000.

Question

Creble Company reported net income for 2018 in the amount of $40,000. The company's financial statements also included the following: $\begin{array}{lll}
\text {Increase in accounts receivable }&\$4,000\
\text {Decrease in inventory }&2,000\
\text {Depreciation expense }&3,000\
\text {Gain on sale of equipment }&5,000\
\end{array}$
 In the statement of cash flows what is net cash provided by operating activities under the indirect method?
A) $36,000.
B) $41,000.
C) $40,000.
D) $38,000.

Quizplus · Accepted Answer

$\begin{array}{lr}
\text { Net income } & \$ 0,000 \
\text { Increase in accounts receivable } & (4,000) \
\text { Decrease in inventory } & 2,000 \
\text { Depreciation expense } & 3,000 \
\text { Gain on sale of equipment } & (5,000)\
\text { Net cash flows from operating activities }&\$36,000
\end{array}$

Creble Company Reported Net Income for 2018 in the Amount