How many items enter the computation of Cramer’s net cash provided by operating activities?

a. 2

b. 3

c. 7

d. 5

Cramer Corporation formats operating cash flows using the indirect method in this questions. Cramer uses the direct method in this question.

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A1 Cramer's Income Statement for 2018 $ 170,000 10,000* $ 110,000 7,500 27,000 2 Sales revenue 3 Gain on sale of equipment 4 Cost of goods sold 5 Depreciation 6 Other operating expenses 7 Net income $ 180,000 144,500 $ 35,500 *The book value of equlpment sold durlng 2018 was $22,000. A1 Cramer's Comparative Balance Sheets December 31, 2018 and 2017 1 2018 $ 3,500 6,000 8,000 89,000 $ 106,500 2017 $ 2,000 | Accounts payable $ 11,000 Accrued liabilities 7,000 Common stock 71,000 Retained earnings $ 91,000 2018 7,000 $ 8,000 9,000 20,000 70,500 $ 106,500 $ 91,000 2017 3 Cash 4 Accounts receivable 5 Inventory 6 Plant and equipment, net 1,000 10,000 72,000