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.