Assume the following information: Net income: $275,000 Depreciation:$40,000 Amortization: $9,000 Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: Ending Beginning Cash $50,000 $60,000 Accounts receivable 112,000 108,000 Inventories 105,000 93,000 Prepaid expenses 4,500 6,500 Accounts payable (merchandise creditors) 75,000 89,000 The company uses the indirect method when preparing the Statement of Cash Flows. What is the reported cash flows from operating activities on the Statement of Cash Flows? o $324,000 o $352,000 o $296,000 o $198,000 A company is considering buying a machine that costs $675,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash flow of $150,000, and annual operating income of $87,500. What is the estimated cash payback period for the machine? o 3.5 years o 4 years o 5 years o 4.5 years