In preparing a company's statement of cash flows for the most recent year on the indirect method, the following information is available:

Net income for the year was $ 58,500

Accounts payable decreased by 24,500

Accounts receivable decreased by 31,500

Inventories increased by 11,500

Cash dividends paid were 15,300

Depreciation expense was 33,500

Net cash provided by operating activities was:

A) $33,500

B) $87,500

C) $130,500

D) $72,800

E) $47,500

Net cash provided by operating activities was: $ 72,200 (None of the Above Options)

Explanation:

Cash flow from Operating Activities is a section in the Statement of Cashflow that reconcils the Net Income to net cashflow after adjastments in (1) Non Cash Items (2) Items Included Elsewhere in Cashflow Statement (3) Working Capital Movements.

Cashflow From Operating Activities

Net income for the year was 58,500

(1) Adjastments for Non Cash Items

Depreciation expense was 33,500

(2) Adjastments for Items Included Elsewhere

Cash dividends paid were (15,300)

(3) Adjastments for Working Capital Movements

Accounts payable decreased by (24,500)

Accounts receivable decreased by 31,500

Inventories increased by (11,500)

Net Cash from Operating Activities 72,200