Wessen Company Reports Net Income of $200,000 for the Year

Multiple Choice

Wessen Company reports net income of $200,000 for the year ended December 31,2010.It also reports $40,000 depreciation expense,$22,500 amortization expense and a $15,000 loss on the sale of machinery.Its comparative balance sheets reveal a $225,700 increase in accounts receivable,$31,600 decrease in accounts payable,$15,000 decrease in prepaid expenses,and $48,100 decrease in wages payable.What is the net cash flows provided (used) by operating activities using the indirect method?

A) ($12,900)
B) $57,900
C) $50,400
D) ($57,900)
E) ($50,400)