Pinecrest Company

Use the selected data from Pinecrest Companys financial statements to answer the following question.

	2017	2016
Cash	$ 22,000	$ 14,000
Accounts receivable	42,000	16,000
Merchandise inventory	22,000	83,000
Prepaid expenses	23,000	18,000
Total current assets	$109,000	$131,000
Total current liabilities	$ 65,000	$ 72,000
Net credit sales	221,000	326,000
Cost of goods sold	168,000	299,000
Net cash flow from operating activities	16,000	29,000

Which of the following statements is true?

a.Cash flows from operating activities is twice as large as net income for 2017.

b.The amount of net income for 2017 cannot be determined based on the data provided.

c.Net income must be at least $36,000 for 2017.

d.Net income must be less than $36,000 for 2017.