Reference no: EM132585985

The net income reported on the income statement for the current year was $320,571. Depreciation recorded on fixed assets and amortization of patents for the year were $44,454, and $10,409, 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                       $41,720                 $51,364

Accounts receivable        103,560             125,535

Inventories                 95,939                  106,896

Prepaid expenses           6,358                      3,596

Accounts payable

(merchandise creditors)      73,926                48,040

Question 1: What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?

a. $313,854

b. $408,366

c. $335,768

d. $332,677