Did depreciation expense provide cash inflow

Reference no: EM131004130

Webster Corporation's statement of cash flows for the year ended December 31, 2007, was prepared using the indirect method, and it included the following items:

Net income Noncash adjustments:	$100,000
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 2007 income statement.

Required:

a. What amount of cash did Webster receive from customers during the year ended December 31, 2007?

b. Did depreciation expense provide cash inflow? Comment.

Reference no: EM131004130

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