Oswald Ltd The Following Additional Data Were Provided for Calendar 2020:
1)

Oswald Ltd. has recently decided to go public and has hired you as their independent accountant. They wish to adhere to IFRS and know that they must prepare a statement of cash flows. Their financial statements for 2020 and 2019 are provided below:

$\begin{array}{ll}\text{} & \quad \quad \quad \quad \quad Dec ~~31/20 \quad \quad Dec ~~31/19 & \\\text{Cash ......................................................................................... } & \quad \quad \quad \quad \quad\text{\$51,000 \quad \quad \quad 24,000} \\\text{Accounts receivable ..........................................................} & \quad \quad \quad \quad \quad \text{\$45,000 \quad \quad \quad 27,000} \\\text{Merchandise inventory..............................................................} & \quad \quad \quad \quad \quad \text{\$48,000 \quad \quad \quad 60,000} \\\text{Property, plant and equ ipment.......................................................................} & \quad \text{\$76,000 \quad \quad \quad 120,000} \\\text{ \quad\quad Less accumulated depreciation...............................} & \text{\$\(\underline{\text{(40,000) }}\) \(\underline{\text{(36,000) }}\) \(\underline{\text{(38,000) }}\) \(\underline{\text{(82,000) }}\) } \\\text{ Total Assets.........................................................} & \quad \quad \quad \quad \quad \text{\$\(\underline{\text{(180,000) }}\) \quad \quad \quad \(\underline{\text{(193.,000) }}\) } \\ \text{} & \quad \quad \quad & \\\text{Accounts payabl.................} & \quad \quad \quad \quad \quad \text{\$22,000 \quad \quad \quad 12,000} \\\text{ Income taxes payable................................................................} & \quad \quad \quad \quad \quad \text{\$44,000 \quad \quad ~~~~49,000} \\ \text{Bonds payable ................................................ } & \quad \quad\quad \quad \quad \text{\$45,000 \quad \quad \quad 75,000} \\\text{ Common shares...................................} & \quad \quad \quad \quad \quad \text{\$27,000 \quad \quad \quad \quad 27,000} \\\text{Retained earnings.....................................} & \quad \quad \quad \quad \quad \text{\$42,000 \quad \quad \quad \quad 30,000} \\\text{Total Liabilities \& Shar eholders' Equ ity...................} & \quad \quad \quad \quad \quad \text{\$180,000 \quad \quad \quad \quad 193,000} \\ \text{} & \\ \text{} & & \\ \text{} & Income Statement & \\ \text{} & Year endebt December 31,2020 & \\ \\ \\\text{Sales ............................................................................................................. } & \text{\$1,050,000 \quad } \\\text{Cost of sales................................................................................................... } & \text{\ \(\underline{\text{ 894,000 }}\) \quad } \\\text{Gross profit.................................................................................................... } & \text{\ 156,000 \quad } \\\text{Selling and administrative expenses................................................................ } & \text{\ \(\underline{\text{ 99,000 }}\) \quad } \\\text{Income from operations.................................................................................. } & \text{\ 57,000 \quad } \\\text{Intersts expense.............................................................................................. } & \text{\ \(\underline{\text{ 9,000 }}\) \quad } \\\text{Income before taxes ........................................................................................ } & \text{\ 40,000 \quad } \\\text{Income taxes................................................................................................. } & \text{\ \(\underline{\text{ 12,000 }}\) \quad } \\\text{Net income...................................................................................................... } & \text{\$ \(\underline{\text{ 36,000 }}\) \quad } \\\end{array}$



The following additional data were provided for calendar 2020:
1) Dividends declared and paid were $ 24,000.
2) Equipment was sold for $ 30,000. This equipment originally cost $ 44,000, and had a book value of $ 36,000 at the time of sale. The loss on sale was included in "selling and administrative expenses," as was the depreciation expense for the year.
3) Bonds were retired during the year at par.
For a statement of cash flows for calendar 2020, using the indirect method, the cash provided by operating activities is

A) $ 51,000.
B) $ 36,000.
C) $ 30,000.
D) $ 25,000.