A Corporation Reported the Following Information in Its Income Statement

question 169

Multiple Choice

A corporation reported the following information in its income statement: $$\begin{array} { | l | l | } \hline \text { Sales revenue (none on credit) } & \$ 60,000 \\\hline \text { Cost of goods sold (paid in cash) } & 40,000 \\\hline \text { Gross margin on sales } & 20,000 \\\hline \text { Depreciation expense } & ( 2,000 ) \\\hline \text { Amortiz ation expense } & ( 1,000 ) \\\hline \text { Wage expense (paid in cash) } & ( 2,500 ) \\\hline \text { Income betore taxes } & 14,500 \\\hline \text { Income taxes } ( 20 \% ) \text { (paid in cash) } & ( 2,900 ) \\\hline \text { Net income } & \$ 11,600 \\\hline\end{array}$$ The corporation should report the following amount on its Statement of Cash Flows for net cash from operating activities:

• A) $11,600.
• B) $13,600.
• C) $14,600.
• D) $17,100.

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