You are absolutely correct!
$137,000.
| Solution: | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Operating Loss |
$ |
(110,500) |
||||
Depreciation |
$ |
245,000 |
||||
Change in Accounts Payable |
$ |
2,500 | ||||
| Net Cash Provided by Operating Activities | 137,000 | |||||