Rovai Corporaton uses the ndrect method of computing net cas

Rovai Corporaton uses the ndrect method of computing net cash fow trom $10,300, merchandise inventory increased by $15,300, reported net income for 2018 of $157,800 (including $34,800 operating activities and reported the following for 2018 Accounts receivable decreased by accounts payable decreased by $4.000, and income taxes payable increased by $18,800. If Royal Corporation of depreciation expense), net cash fow from operating activities for 2018 is: Select one o a. $202,400. O b. $132,800. O c. $164,800. O d. $221,700 age Next page straighterline

Solution

Net income 157800 Add:depreciaiton 34800 Add:decrease in AR 10300 Less:increase in Merchandise inventory (15300) Less:decrease in AP (4000) Add:increase in income taxes payable 18800 Net cash flow from operating activities $202400.