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In its second year of business, a company has a net income of $120,000. The following table provides year end account information. Account Year 1

In its second year of business, a company has a net income of $120,000. The following table provides year end account information.

Account Year 1 Year 2

Accounts payable $5,000 $4,000

Accumulated depreciation $65,000 $85,000

Prepaid expenses $20,000 $15,000

Fixed assets $250,000 $255,000

The company uses the indirect method in preparation of a statement of cash flows for Year 2.

How much should the company report as net cash provided by operating activities?

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