Reference no: EM132954669

The net income reported on the income statement for the current year was $275,000. Depreciation recorded on fixed assets and amortization of patents for the year were $40,000 and $9,000, respectively.

Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows:

                                                                                      End                       Beginning
Cash                                                            $50,000                 $60,000
Accounts receivable                                       112,000                  108,000
Inventories                                                    105,000               93,000
Prepaid expenses                                              4,500                6,500
Accounts payable (merchandise creditors)          75,000                    89,000

Problem 1: What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?