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Question
Wessen Company reports net income of $200,000 for the year ended December 31, 2013. It also reports $40,000 depreciation expense, $22,500 amortization expense, and a $15,000 loss on the sale of machinery. Its comparative balance sheets reveal a $225,700 increase in accounts receivable, $31,600 decrease in accounts payable, $15,000 decrease in prepaid expenses, and $48,100 decrease in wages payable. What net cash flows are provided (used) by operating activities using the indirect method?
A. ($12,900)
B. $57,900
C. $50,400
D. ($57,900)
E. ($50,400)
Answer
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