Answer:
$219,700
Explanation:
Operating activities: It includes those transactions which affect the working capital after net income. The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added.
These changes in working capital would be adjusted. Moreover, the depreciation expense is added to the net income
The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:
Cash flow from Operating activities - Indirect method
Net income $184,850
Adjustment made:
Add : Depreciation expense $33,700
Add: Loss on the disposal of plant assets $4,690
Less: Increase in accounts receivable -$15,150
Add: Increase in accounts payable $15,640
Less: Increase in prepaid expenses -$4,030
Total of Adjustments $34,850
Net Cash flow from Operating activities $219,700
