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 shown at the top of the following page.
|
|
End
|
Beginning
|
|
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
|
The total amount reported for cash flows from operating activities in the statement of cash flows, using the indirect method, is:
A. $33,000.
B. $55,000.
C. $65,500.
D. $77,000.