Answer:
B. $170,000.
Explanation:
X company
statement of cash flow
For the year ended
Net income (balancing) (Note - 1) $170,000
Cash flow from operating activities
Depreciation expense $25,000
Increase in account receivable $(20,000)
Increase in inventory $(10,000)
decrease in Prepaid Expenses $25,000
Decrease in Accounts Payable $(20,000)
Increase in Deferred Revenue $30,000
<u>Cash flow $30,000</u>
Net cash flow from operating activities $200,000
Note 1:
Net cash flow from operating activities - Total changes in working capital= $200,000-$30,000 = $170,000.
