A Corporation Prepares Its Statement of Cash Flows Using the Indirect

Multiple Choice

A corporation prepares its statement of cash flows using the indirect method to report operating activities.Net income for the 2014 fiscal year was $634,000.Depreciation and amortization expense of $60,000 and $30,000 respectively were included with operating expenses in the income statement.The following information describes the changes in current assets and liabilities other than cash: $\begin{array}{lr}\text {Decrease in accounts receivable } & \$ 22,000\\\text {Increase in inventories } & 9,400\\\text {Increase prepaid expenses } &8,900\\\text {Increase in salaries payable } & 10,400\\\text {Decrease in income taxes payable } & 14,400\\\end{array}$
Determine the net cash flow provided (used) by operating activities.

A) ($692,500)
B) $692,500
C) $723,700
D) ($536,300)
E) ($723,700)