The net income reported on the income statement for the year was $55,000, and depreciation of fixed assets for the year was $22,000. The balances of the current asset and current liability accounts at the beginning and end of the year are as follows:

The total amount repotted for cash flows from op¬ erating activities in the statement of cash flows, us ing the indirect method, is:
A. $33,000 C. $65,500 B. $55,000 D. $77,000.AppendixLO1

Transcribed Image Text:

End Cash Accounts receivable Inventories $ 65,000 100,000 145,000 Beginning $ 70,000 90,000 150,000 Prepaid expenses 7,500 8,000 Accounts payable (merchandise creditors) 51,000 58,000