Webster Corporation’s statement of cash flows for the year ended December 31, 2002, was prepared using the indirect method, and it included the following items:
|
Net income |
$100,000 |
|
Noncash adjustments: |
|
|
Depreciation expense |
20,000 |
|
Decrease in accounts receivable |
8,000 |
|
Decrease in inventory |
25,000 |
|
Increase in accounts payable |
10,000 |
|
Net cash flows from operating activities |
$163,000 |
Note: Webster Corporation reported revenues from customers of $150,000 in its 2002 income statement.
Required:
a. What amount of cash did Webster receive from customers during the year ended December 31, 2002?
b. Did depreciation expense provide cash inflow? Comment.