During 2019,the Bowtie Company Reported Net Income of $1,872 Million,depreciation

Multiple Choice

During 2019,the Bowtie Company reported net income of $1,872 million,depreciation expense of $1,412 million and $978 million paid for purchases of property,plant,and equipment.Using the indirect method of preparing the statement of cash flows,what would be the effect on cash flows from operating activities during 2019?

A) Cash flows from operating activities would be increased by depreciation expense and decreased by the property,plant,and equipment purchases.
B) Cash flow from operating activities would be increased by depreciation expense and by the property,plant,and equipment purchases.
C) Cash flow from operating activities would be increased by depreciation expense but the property,plant,and equipment purchases would have no effect on cash flow from operating activities.
D) Depreciation is a noncash expense and would not be used to calculate cash flow from operating activities.