Wessen Company Reports Net Income of $180,000 for the Year

question 34

Multiple Choice

Wessen Company reports net income of $180,000 for the year ended December 31, 2010. It also reports $45,800 depreciation expense, $21,410 amortization expense and a $15,000 gain on the sale of machinery. Its comparative balance sheets reveal a $28,300 increase in accounts receivable, $20,400 decrease in accounts payable, $10,470 increase in prepaid expenses, and $33,140 decrease in wages payable. What is the net cash flows provided (used) by operating activities using the indirect method?

• A) ($140,200)
• B) $133,490
• C) $140,200
• D) ($133,490)
• E) $78,300