Charmed, Inc. had net income of $53,000. Accounts Receivable increased by $28,000; inventory decreased by $18,000; accounts payable increased by $4,000 and salaries payable decreased by $1,200. The amount of cash flow from operating activities under the indirect method is:

A) $40,200.
B) $45,800.
C) $58,200.
D) $68,200.


B) $45,800.
Explanation: net income - A/R + inventory + A/P - salary payable; ex: $53,000 - $28,000 + $18,000 + $4,000 - $1,200 = $45,800

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