During 2010,the Bowtie Company Reported Net Income of $1,872 Million,depreciation

Multiple Choice

During 2010,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.What would be the effect on cash flows from operating activities during 2010?

A) Depreciation expense would increase cash flows from operations and the property, plant and equipment purchases would decrease cash flow from operations.
B) Depreciation would increase cash flow from operations and property, plant and equipment purchases would increase cash flows from operations.
C) Depreciation would increase cash flow from operations but the property, plant and equipment purchases would have no effect on cash flow from operations.
D) Depreciation is a non-cash expense and would not be used to calculate cash flow from operations.