The Net Income Reported on the Income Statement for the Current

question 56

Multiple Choice

The net income reported on the income statement for the current year was $275,000. Depreciation recorded on fixed assets and amortization of patents for the year were $40,000 and $9,000, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?

• A) $198,000
• B) $324,000
• C) $352,000
• D) $296,000