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Question - From the information given below, calculate the net cash flows from operating activities using the indirect method.
Net income $170,000
Depreciation 5,750
Loss on disposal of plant asset 4,000
Increase in inventory 7,500
Increase in prepaid expenses 5,460
Decrease in accounts payable 6,750
A. $152,040
B. $160,040
C. $173,540
D. $176,460
You let your senior know that you likely do not have any additional work to perform. Your senior asks you to reconsider your conclusion. What is likely the primary concern of your senior?
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