Mercury Corporation Reported the Following Information on Its Financial Statements

question 6

Multiple Choice

Mercury Corporation reported the following information on its financial statements: $\begin{array}{lll}&\underline{ 2014 }&\underline{ 2013 }\\\text { Accountsreceivable } &\$ 150,000 & \$ 120,000 \\\text { Prepaid expenses } &9,000 & 10,000 \\\text { Accounts payable } &65,000 & 80,000 \\\text { Salaries payable } &12,000 & 5,000 \\\text { Net income } &200,000 & \\\text { Depreciation expense } &14,000 & \\\text { Gain on sale of equipment } &6,000 &\end{array}$
If the company uses the indirect method to prepare the operating activities section of the statement of cash flows,what amount will be reported as net cash inflow from operating activities for 2014?

• A)$171,000
• B)$215,000
• C)$245,000
• D)$183,000

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Linus Pauling

An influential American chemist known for his work in chemical bonding, quantum chemistry, and health advocacy.