The following income statement was drawn from the income statement of Gibbons Company for its first year of operations: Cash revenue$60,000 Depreciation expense 20,000 Accrued interest expense 6,000 Cash operating expense 24,000 Operating income 10,000 Gain on the sale of equipment 1,200 Net income$11,200 Using the direct method, the net cash flow from operating activities equals:
A. $26,000.
B. $24,800.
C. $36,000.
D. $37,200.
Answer: C
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