Find the total amount reported for cash flows

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Reference no: EM132755356

Problem - The net income reported on the income statement for the year was $55,000, and depreciation of fixed assets for the year was $22,000. The balances of the current asset and current liability accounts at the beginning and end of the year are as follows:

 

End of Year

Beginning of Year

Cash

$65,000

$70,000

Accounts receivable

100,000

90,000

Inventories

145,000

150,000

Prepaid expenses

7,500

8,000

Accounts payable (merchandise creditors)

51,000

58,000

Required - Find the total amount reported for cash flows from operating activities on the statement of cash flows using the indirect method?

a. $33,000.

b. $55,000.

c. $65,500.

d. $77,000.

Reference no: EM132755356

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