Answer:
$324,000
Explanation:
The preparation of the Cash Flows from Operating Activities - Indirect Method is presented below:
Cash flow from Operating activities
Net income $275,000
Add : Depreciation expense $30,000
Add: Amortization expense $4,000
Add: Decrease in accounts receivable $6,000 ($102,000 - $108,000)
Add: Decrease in inventory $5,000 ($88,000 - $93,000)
Less: Increase in prepaid expenses -$2,000 ($8,500 - $6,500)
Add: Increase in account payable $6,000 ($95,000 - $89,000)
Net Cash flow from Operating activities $324,000
