Felix Skateboards Company Uses the Indirect Method to Prepare the Statement

question 162

Multiple Choice

Felix Skateboards Company uses the indirect method to prepare the statement of cash flows.Refer to the following income statement: $\begin{array}{c}\text {Felix Company}\\\text {Income Statement}\\\text {Year Ended December 31, 2017}\\\begin{array}{|l|r|r|}\hline\text { Sales Revenue } & \$ 250,000 \\\hline \text { Interest Revenue } & 2,200 \\\hline \text { Gain on Sale of Plant Assets } & \text { 5,100 } \\\hline \text { Total Revenues and Gains } &&\$257,300\\\hline \text { Cost of Goods Sold } & 124,000 \\\hline \text { Salary Expense } & 41,000 \\\hline \text { Depreciation Expense } & 14,000 \\\hline \text { Other Operating Expenses } & 23,000 \\\hline \text { Interest Expense } & 1,900 \\\hline \text { Income Tax Expense } & 5,200 \\\hline\text { Total Expenses } & & 209,100 \\ \hline \text { Net Income (Loss) } & & \$ 48,200\\\hline\end{array}\end{array}$ 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

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