Magnolia Company's statement of cash flows showed net cash provided by operating activities of $47, 000 in 2010.Magnolia reported an increase in accounts payable of $6, 000, an increase in inventory of $2, 000, depreciation expense of $3, 000, and dividends paid of $8, 000.Magnolia's net income for 2010 was

A) $48, 000
B) $40, 000
C) $39, 000
D) $32, 000

Accounts Payable

Money owed by a company to its creditors for goods and services that have been received but not yet paid for.

Depreciation Expense

The allocation of an asset's cost over its useful life, reflecting the asset's consumption, wear, and tear.

Dividends Paid

The total amount of earnings distributed by a company to its shareholders as a reward for their investment.