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:
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Net income
Noncash adjustments:
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$100,000
|
|
Depreciation expense
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20,000
|
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Decrease in accounts receivable
|
8,000
|
|
Decrease in inventory
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25,000
|
|
Increase in accounts payable
|
10,000
|
|
Net cash flows from operating activities
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$163,000
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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.