Corporation formats operating cash flows using the indirect method.

Cramer's Income Statement for 2018

Sales revenue $170,000

Gain on sale of equipment 10,000* $180,000

Cost of goods sold $110,000

Depreciation 7,500

Other operating expenses 27,000 144,500

Net income $35,500

* The book value of equipment sold during 2018 was $22,000.

Cramer's Comparative Balance Sheets

December 31, 2018 and 2017

2018 2017 2018 2017

Cash $3,500 $2,000 Accounts payable $7,000 $8,000

Accounts receivable 6,000 11,000 Accrued liabilitie 9,000 1,000

Inventory 8,000 7,000 Common stock 20,000 10,000

Plant and equipment, net 89,000 71,000 Retained earnings 70,500 72,000

$106,500 $91,000 $106,500 $91,000

Cramer's net cash provided by operating activities during 2018 was

A.$32,000

B.$33,000.

C.$37,000.

D. $44,000.