The Following Income Statement Was Drawn from the Annual Report

question 17

Multiple Choice

The following income statement was drawn from the annual report of Newtown Company:
$\begin{array}{|c|c|}\hline \text { Cash revenue } & \$ 30,000 \\\hline \text { Depreciation expense } & (10,000) \\\hline \text { Accrued interest expense } & (3,000) \\\hline \text { Cash operating expenses } & (12,000) \\\hline \text { Operating income } & 5,000 \\\hline \text { Gain on sale of equipment } & 600 \\\hline \text { Net Income } & \underline{\$ 5,600} \\\hline\end{array}$
What is the net cash flow from operating activities?

• A) $18,000
• B) $18,600
• C) $13,000
• D) $14,400