Walker Company Reports Net Income of $420,000 for the Year

Multiple Choice

Walker Company reports net income of $420,000 for the year ended December 31,2010.It also reports $75,600 depreciation expense and a gain of $11,000 on the sale of machinery.Its comparative balance sheets reveal a $33,600 decrease in accounts receivable,$17,220 increase in accounts payable,$9,240 increase in prepaid expenses,and $13,020 increase in wages payable.What is the net cash flows provided (used) by operating activities using the indirect method?

A) ($539,200)
B) $300,800
C) $561,200
D) ($300,800)
E) $539,200