A company's 2013 year-end balance sheet included the following:

The company's net cash from operating activities on its 2013 Statement of Cash Flows is $200,000. Current year depreciation expense is $25,000. What amount should the company report as net income for 2013? Explain your answer

Jan. 1 Dec. 31 Accounts Receivable $80,000 $100,000 Inventory Prepaid Expenses $100,000 $75,000 Accounts Payable $120,000 $100,000 Unearned Revenue $65,000 $95,000 60,000 $70,000