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At the End of the First Year of Operations,the Balance

Question 60

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At the end of the first year of operations,the balance sheet of Midwood Medical Supply showed the following account balances: Accounts Receivable,$5,000;Accounts Payable,$6,000;Inventory,$3,000;and Unexpired Insurance,$2,000.The corporation reported net income of $79,000 for the year,including depreciation expense of $5,000,and uses the indirect method of computing net cash flow from operating activities.Solely on the basis of this information,net cash flow from operating activities is:


A) $78,000.
B) $82,000.
C) $77,000.
D) $80,000.

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