Financial statements $-$ Income statement for $20$X$4$ and Comparative Balance Sheet for diving equipment manufacturer Lincoln Corp for December $31,20$X$4$ and $20$X$3$

Lincoln Corp. $-$ Income Statement as of December $31$st$,20$X$4$

Revenue $ $5,000$

Cost of Goods Sold $ $3,200$

Gross Profit $ $1,800$

Operating expenses $ $1,350$

Operating Profit $ $450$

Loss on sale of equipment $ $20$

Income tax expense $ $180$

Profit for $2012$ $ $250$

Lincoln Corp. $-$ Balance Sheet $-$ December $31$

$20$X$420$X$3$

Assets:

Cash $ $2,350$ $ $1,800$

Accounts Receivable $4501,000$

Inventory $800700$

Prepaid expenses $4080$

Equipment $2,5001,500$

Accumulated Depreciation $(1,350)(1,000)$

Total Assets $ $4,790$ $ $4,080$

Liabilities & Shareholders' Equity

Accounts Payable $ $680$ $ $350$

Operating expenses payable $210100$

Income Taxes Payable $1200$

Dividends Payable $50100$

Long term notes Payable $30070$

Common Shares $2,5002,500$

Retained Earnings $930960$

Total Liabilities & Shareholders' Equity $ $4,790$ $ $4,790$

Additional Information for Lincoln Corp:

$1)$ Operating expenses for $20$X$4$ included depreciation for $$500$

$2)$ Accounts payable relate exclusively to the purchase of inventory

$3)$ Machine with a historical cost of $$200$ was sold at a loss of $$20$

$4)$ A new machine was purchased during the year for $$1,200$

$5)$ Dividends were declared

$6)$ Long term notes payable were issued

If the company uses ASPE, the Net Cash provided $($used$)$ by operating activities when using the indirect method is:

a$)$ less than $$250$

b$)$ $$1,570$

c$)$ $$1,820$

d$)$ None of the other alternatives are correct Incorrect

e$)$ more than $$2,000$