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he net income reported on the income statement for the current year was $305,000. Depreciation recorded on fixed assets and amortization of patents for the
he net income reported on the income statement for the current year was $305,000. Depreciation recorded on fixed assets and amortization of patents for the year were $50,000 and $5,000, respectively. Balances of current asset and current liability accounts at the end and beginning of the year are as follows:
Line Item Description | End | Beginning |
---|---|---|
Cash | $58,000 | $70,000 |
Accounts receivable | 114,000 | 110,000 |
Inventory | 103,000 | 93,000 |
Prepaid expenses | 4,500 | 6,500 |
Accounts payable (merchandise creditors) | 74,000 | 88,000 |
What is the amount of net cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?
a. $208,000
b. $322,000
c. $334,000
d. $392,000
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