Wilma Corporation Prepares Its Statement of Cash Flows Using the Indirect

Multiple Choice

Wilma Corporation prepares its statement of cash flows using the indirect method to report operating activities.Net income for the 2011 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)