Webster Corporation's statement of cash flows for the year ended December 31, 2007, was prepared using the indirect method, and it included the following items:
|
Net income Noncash adjustments:
|
$100,000
|
|
Depreciation expense
|
20,000
|
|
Decrease in accounts receivable
|
8,000
|
|
Decrease in inventory
|
25,000
|
|
Increase in accounts payable
|
10,000
|
|
Net cash flows from operating activities
|
$163,000
|
Note: Webster Corporation reported revenues from customers of $150,000 in its 2007 income statement.
Required:
a. What amount of cash did Webster receive from customers during the year ended December 31, 2007?
b. Did depreciation expense provide cash inflow? Comment.