Reference no: EM132530104

Assuming Net Income for the year is $245,000, what is the net cash flows from operating activities given the following information:

Increase in Salaries Payable $20,500

Depreciation Expense         $7,500

Increase in Prepaid Rent     $29,500

Loss on sale of asset           $1,350

Increase in Accounts Payable $34,500

Increase in Inventory             $51,000

Question 1: Assume net income was $190,000, depreciation expense was $6,600, accounts receivable decreased by $10,500, and accounts payable decreased by $3,400. The amount of net cash flows from operating activities is:

Multiple Choice

Option 1: $196,600.

Option 2: $203,700.

Option 3: $183,400.

Option 4: $190,000