Answer: Option (d) is correct.
Explanation:
Given that,
Net Income = $252,327
Depreciation expense = $21,821
Accounts Receivable increased by = $14,346
Inventory increased by = $33,617
Prepaid Expenses decreased by = $3,079
Accounts Payable decreased by = $4,161
Loss on the sale of equipment = $5,398
Operating Income = Net Income + Depreciation expense - Accounts Receivable - Inventory + Prepaid Expenses - Accounts Payable + Loss on the sale of equipment
= $252,327 + $21,821 - $14,346 - $33,617 + $3,079 - $4,161 + $5,398
= $230,501
