Felix Skateboards Company uses the indirect method to prepare the statement of cash flows

Question

Refer to the following income statement:

Felix Company
Income Statement
Year Ended December 31, 2017
Sales Revenue $250,000
Interest Revenue 2,200
Gain on Sale of Plant Assets 5,100
Total Revenues and Gains $257,300
Cost of Goods Sold 124,000
Salary Expense 41,000
Depreciation Expense 14,000
Other Operating Expenses 23,000
Interest Expense 1,900
Income Tax Expense 5,200
Total Expenses 209,100
Net Income (Loss) $48,200

Additional information provided by the company includes the following:
1. Current assets, other than cash, increased by $20,000.
2. Current liabilities decreased by $1,500.

Compute the net cash provided by (used for) operating activities.
A) $26,700
B) $40,700
C) $35,600
D) $11,700

Answer 1

C .C)
Net Income $48,200
Less: Change in Current Assets $(20,000 )
Less: Change in Current Liabilities (1,500 )
Add: Depreciation Expense 14,000
Less: Gain on sale of plant assets (5,100 )
Net cash provided by operating activities $35,600