In Flagg Company, net income is $280,000.If accounts receivable increased $145,000 and accounts payable decreased $50,000, net cash provided by operating activities using the indirect method is:

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The net cash provided by operating activities is calculated by adjusting net income for changes in working capital. Increase in accounts receivable ($145,000) is subtracted, and decrease in accounts payable ($50,000) is also subtracted from net income ($280,000), resulting in $85,000.

In Flagg Company, Net Income Is $280,000