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Question
A company had net income of $252,000. Depreciation expense was $26,000. During the year, accounts receivable and merchandise inventory increased by $15,000 and $40,000, respectively. Prepaid expenses and accounts payable decreased by $2,000 and $4,000, respectively. There was also a loss on the sale of equipment of $3,000. How much was the net cash flows from operating activities on the statement of cash flows using the indirect method?
a. $217,000
b. $224,000
c. $284,000
d. $305,000
Answer
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