Net income reported on the income statement for the current year was $300,000.Depreciation recorded on plant assets was $40,000.Accounts receivable and inventories decreased by $8,000 and $7,500 respectively.Prepaid expenses and accounts payable increased by $200 and $3,000 respectively.Using the indirect method, how much would be reported as net cash flow from operating activities on the statement of cash flows?
A) $100,200
B) $358,300
C) $400,670
D) $512,700

Question

Quizplus · Accepted Answer

Net cash flow from operating activities = Net income + Depreciation + Decrease in accounts receivables + Decrease in inventories - Increase in prepaid expenses + Increase in accounts payable = $300,000 + $40,000 + $8,000 + 7,500 - $200 + $3,000 = $358,300

Net Income Reported on the Income Statement for the Current