S&C's records show Accounts Receivable amounted to $205,000 at the beginning of the year and $240,000 at the end of the year. Income reported on the Income Statement for the year was $310,000. The cash flow from operating activities on the cash flow statement using the indirect method is:

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The cash flow from operating activities can be calculated using the indirect method by starting with the net income and adjusting for changes in working capital. Here, the net income is $310,000. Accounts Receivable increased by $35,000 ($240,000 - $205,000), which means the company earned more on credit than it collected in cash. To adjust for this in the cash flow statement, we subtract the increase in Accounts Receivable from the net income. Therefore, the cash flow from operating activities is $310,000 - $35,000 = $275,000.

S&C's Records Show Accounts Receivable Amounted to $205,000 at the Beginning