financeUse the following data. Solomon Corporation formats operating cash flows by the indirect method. Solomon’s Income Statement for 2012
$$
\begin{matrix}
\text{Sales revenue..................................... } & \text{\$170,000} & \quad\\
\text{Gain on sale of equipment................. } & \text{10,000* } & \text{\$180,000}\\
\text{Cost of goods sold.............................} & \text{112,000 } & \quad\\
\text{Depreciation...................................... } & \text{7,500 } & \quad\\
\text{Other operating expenses..................} & \text{24,000} & \text{143,500 }\\
\text{Net income .......................................} & \quad & \text{\$ 36,500}\\
\end{matrix}
$$
*The book value of equipment sold during 2012 was $20,000. Solomon’s Comparative Balance Sheets at the end of 2012$
$$
\begin{matrix}
\quad & \text{2012} & \text{2011} & \quad & \text{2012} & \text{2011}\\
\text{Cash} & \text{\$ 3,000} & \text{\$ 2,000 } & \text{Accounts payable } & \text{\$ 7,000 } & \text{\$ 8,000 }\\
\text{Accounts receivable } & \text{6,000 } & \text{11,000 } & \text{Accrued liabilities } & \text{5,000 } & \text{1,000 }\\
\text{Inventory} & \text{8,000 } & \text{7,000 } & \text{Common stock } & \text{24,000 } & \text{12,000 }\\
\text{Plant and equipment, net} & \text{95,000 } & \text{67,000 } & \text{Retained earnings} & \text{76,000 } & \text{66,000 }\\
\quad & \text{\$112,000} & \text{\$87,000} & \quad & \text{\$112,000} & \text{\$87,000}\\
\end{matrix}
$$
$ How many items enter the computation of Solomon’s net cash provided by operating activities? a. 2 b. 5 c.3 d.7 15th Edition•ISBN: 9780205994861Susan A. MacManus, Thomas R. Dye177 solutions
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