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Ohio, Inc Uses the Indirect Method to Prepare the Statement of of Cash

Question 79

Multiple Choice

Ohio, Inc. uses the indirect method to prepare the statement of cash flows. Refer to the following income statement:  Ohio, Inc. Income Statement Year Ended December 31, 2018 Revenues and Gains:  Sales Revenue $156,000 Interest Revenue 6000 Total Revenues and Gains $162,000 Expenses and Losses:  Cost of Goods Sold $140,000 Salary Expense 23,000 Depreciation Expense 7200 Other Operating Expenses 13,400 Interest Expense 16,200 Loss on Sale of Plant Assets 5000 Income Tax Expense 5500 Total Expenses and Losses 210,300 Net Income (Loss)  $(48,300) \begin{array}{c}\text { Ohio, Inc.}\\\text { Income Statement}\\\text { Year Ended December 31, 2018}\\\begin{array}{|l|r|r|}\hline \text { Revenues and Gains: } & & \\\hline \text { Sales Revenue } & \$ 156,000 & \\\hline \text { Interest Revenue } & 6000 & \\ \hline \text { Total Revenues and Gains } & &\$ 162,000 \\ \hline \text { Expenses and Losses: } & & \\\hline \text { Cost of Goods Sold } & \$140,000 & \\\hline \text { Salary Expense } &23,000& \\\hline \text { Depreciation Expense } & 7200 & \\\hline \text { Other Operating Expenses } & 13,400& \\\hline \text { Interest Expense } & 16,200 & \\\hline \text { Loss on Sale of Plant Assets } & 5000 & \\\hline \text { Income Tax Expense } & \underline{5500}& \\\hline \text { Total Expenses and Losses } & &\underline{210,300} \\\hline\text { Net Income (Loss) }&& \$(48,300) \\\hline\end{array}\end{array} Additional information provided by the company includes the following:
Current assets, other than cash, decreased by $5200.
Current liabilities increased by $2300.
Compute the net cash provided by (used for) operating activities.


A) $(28,600)
B) $(55,800)
C) $10,200
D) $33,600

Correct Answer:

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