The net income reported on the income statement for the current year was $300,32

Question

The net income reported on the income statement for the current year was $300,325. Depreciation recorded on fixed assets and amortization of patents for the year were $41,406 and $9,008, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows:

End Beginning
Cash $45,314 $67,230
Accounts receivable $129,360 $103,762
Inventories $103,116 $86,685
Prepaid expenses $3,541 $7,789
Accounts payable (merchandise creditors) $53,066 $71,143

What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?

Select the correct answer.

$295,663

$308,710

$382,231

$294,881

Explanation / Answer

Net income 300325 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation 41406 Amortization of patents 9008 Increase in Accounts receivable -25598 Increase in Inventories -16431 Decrease in Prepaid expenses 4248 Decrease in Accounts payable -18077 Net cash flow from operating activities 294881

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