Based on the information explained below, answer the multiple choice question that follows:
The net income reported on the income statement for the current year was $200,000. Depreciation recorded on plant assets and amortization of patents for the year were $30,000 and $8,000 respectively. Balances of current asset and current liability accounts at the end and at the year end, December 31 and the beginning of the year are as follows:
End Beginning
December 31 January 1
Cash $ 30,000 $ 35,000
Trade receivables 90,000 88,000
Inventories 125,000 117,000
Prepaid expenses 2,500 3,500
Accounts payable (merchandise creditors) 55,000 66,000
What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?
A. $180,000
B. $200,000
C. $218,000
D. $238,000
E. None of the above