Answer:
Net cash from operating activities is $57,220.
Explanation:
Using the indirect method, the Operating Activities section of the statement of cash flows can be prepared as follows:
Statement of Cash Flows
(Operating Activities Section Only)
<u>Details                                                                                          $         </u>
Net income                                                                            35,890 
Adjustment to reconcile net income:
Depreciation expense                                                           18,040 
(Increase) decrease in current assets:
Increase in accounts receivable ($34,630 - $43,060)        (8,430)
Decrease in inventory ($39,870 - $30,370)                          9,500 
Increase in prepaid rent ($15,120 - $16,820)                        (1,700)
Increase (decrease) in current liabilities:
Increase in accounts payable ($25,610 - $19,430)                6,180
Decrease in income taxes payable ($5,970 - $10,500)      (4,530)
Increase in interest payable ($14,710 - $12,440)               <u>     2,270  </u>
Net cash from operating activities                                  <u>    57,220  </u>