A Company Had Net Income of $252,000

question 138

Multiple Choice

A company had net income of $252,000. Depreciation expense was $26,000. During the year, accounts receivable and inventory increased by $15,000 and $40,000, respectively. Prepaid expenses and accounts payable decreased by $2,000 and $4,000, respectively. There was also a loss on the sale of equipment of $3,000. How much was the net cash flow from operating activities on the statement of cash flows using the indirect method?

• A) $217,000
• B) $224,000
• C) $284,000
• D) $305,000

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