Question

Kentucky Company uses the indirect method to prepare the statement of cash flows. Refer to the following income​ statement:

Kentucky Company
Income Statement
Year Ended December​ 31, 2019
Sales Revenue 253,000
Interest Revenue 3,000
Gain on Sale of Plant Assets 6,000
Total Revenues and Gains $262,000
Cost of Goods Sold 118,000
Salary Expense 43,000
Depreciation Expense 13,000
Other Operating Expenses 22.000
Salary Expense 43,000
Interest Expense 1,700
Income Tax Expense 5,500
Total Expenses 203,000
Net Income​ (Loss) $58,000
Additional information provided by the company includes the​ following:
1. Current​ assets, other than​ cash, increased by $22,000.
2. Current liabilities decreased by $1,100.
Compute the net cash provided by​ (used for) operating activities.
A. $42,700.
B, $48,700.
C. $35,700.
D. $13,100.

Answer 1

$41,900

Step-by-step explanation:

Net income. $58,000

Non-Monetary terms

Gain on sale of plants ($6,000)

Depreciation expense. $13,000

Changes in working capital:

Current assets increase. ($22,000)

Current liabilities decrease ($1,100)

Net cash provided by (used for) operating activities is $41,900