Reference no: EM132955323

A company's 2013 year-end balance sheet included the following:

                                               Jan. 1                 Dec. 31

Accounts Receivable                 $80,000.               $100,000

Inventory                                 $60,000               $70,000

Prepaid Expenses                        $100,000              $75,000

Accounts Payable                      $120,000                $100,000

Unearned Revenue                       $65,000                  $95,000

Problem 1: The company's net cash from operating activities on its 2013 Statement of Cash Flows is $200,000. Current year depreciation expense is $25,000. What amount should the company report as net income for 2013?

Option 1: $130,000

Option 2: $170,000

Option 3: $175,000

Option 4: $230,000