The net income reported on the income statement for the current year was $275,000. Depreciation recorded on fixed assets and amortization of patents for the year were $40,000 and $9,000, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows:


End
Beginning

Cash
$ 50,000
$ 60,000

Accounts receivable
112,000
108,000

Inventories
105,000
93,000

Prepaid expenses
4,500
6,500

Accounts payable (merchandise creditors)
75,000
89,000



What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?
$198,000
$324,000
$352,000
$296,000

I keep coming up with 320,000 and am sure this is not right and would like some help. This is not for homework, just extra questions to assist in understanding.

Net Income + Amortization + Decrease in Current Asset - Increase in Current Asset - Decrease in Current Liabilities + Increase In Current Liabilities

**excluding cash

That should do the trick ;)