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Question
Walker Company reports net income of $420,000 for the year ended December 31, 2013. It also reports $75,600 depreciation expense and a gain of $11,000 on the sale of machinery. Its comparative balance sheets reveal a $33,600 decrease in accounts receivable, $17,220 increase in accounts payable, $9,240 increase in prepaid expenses, and $13,020 increase in wages payable. What is the net cash flows provided (used) by operating activities using the indirect method?
A. ($539,200)
B. $300,800
C. $561,200
D. ($300,800)
E. $539,200
Answer
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