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A Corporation Reported the Following Information in Its Income Statement

Question 42

Multiple Choice

A corporation reported the following information in its income statement:  Sales revenue (none on credit)  $60,000 Cost of goods sold (paid in cash)  40,000 Gross margin on sales 20,000 Depreciation expense (2,000)  Amortiz ation expense (1,000)  Wage expense (paid in cash)  (2,500)  Income betore taxes 14,500 Income taxes (20%)  (paid in cash)  (2,900)  Net income $11,600\begin{array} { | l | l | } \hline \text { Sales revenue (none on credit) } & \$ 60,000 \\\hline \text { Cost of goods sold (paid in cash) } & 40,000 \\\hline \text { Gross margin on sales } & 20,000 \\\hline \text { Depreciation expense } & ( 2,000 ) \\\hline \text { Amortiz ation expense } & ( 1,000 ) \\\hline \text { Wage expense (paid in cash) } & ( 2,500 ) \\\hline \text { Income betore taxes } & 14,500 \\\hline \text { Income taxes } ( 20 \% ) \text { (paid in cash) } & ( 2,900 ) \\\hline \text { Net income } & \$ 11,600 \\\hline\end{array} The corporation should report the following amount on its Statement of Cash Flows for net cash from operating activities:


A) $11,600.
B) $13,600.
C) $14,600.
D) $17,100.

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