Question - Trang Dry Cleaners reports net income on the income statement for the current year in the amount of $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
|
What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method by Trang Cleaners' accountants?
a. $198,000
b. $324,000
c. $352,000
d. $296,000