Webster Corporation’s statement of cash flows for the year ended December 31, 2009, was prepared using the indirect method, and it included the following items:
Net income .............$100,000
Noncash adjustments:
Depreciation expense ..........20,000
Decrease in accounts receivable .......8,000
Decrease in inventory ............25,000
Increase in accounts payable .......10,000
Net cash flows from operating activities ...$163,000
Note: Webster Corporation reported revenues from customers of $150,000 in its 2009 income statement.
Required
a. What amount of cash did Webster receive from customers during the year ended December 31, 2009?
b. Did depreciation expense provide cash inflow? Comment.