The Net Income Reported on the Income Statement for the Current

Multiple Choice

The net income reported on the income statement for the current year was $275,000. Depreciation recorded on fixed assets and amortization of patents for the year were $40,000 and $9,000, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: $\begin{array}{lrr} & \text { End } & \text { Beginning } \\\text { Cash } & \$ 50,000 & \$ 60,000 \\\text { Accounts receivable } & 112,000 & 108,000 \\\text { Inventories } & 105,000 & 93,000 \\\text { Prepaid expenses } & 4,500 & 6,500 \\\text { Accounts payable (merchandise creditors) } & 75,000 & 89,000\end{array}$
What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?

A) $198,000
B) $324,000
C) $352,000
D) $296,000