Assume net income was $100,000,depreciation expense was $8,000,accounts receivable decreased by $7,500,and accounts payable decreased by $2,500.The amount of cash flows from operating activities is:

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Cash flows from operating activities are calculated by adjusting net income for changes in working capital and non-cash expenses. Starting with net income of $100,000, add back the non-cash depreciation expense of $8,000, add the decrease in accounts receivable of $7,500 (since it represents cash collected), and subtract the decrease in accounts payable of $2,500 (since it represents cash paid out). This results in $100,000 + $8,000 + $7,500 - $2,500 = $113,000.

Assume Net Income Was $100,000,depreciation Expense Was $8,000,accounts Receivable Decreased