A company reports $200,000 net income, $30,000 depreciation

A company reports $200,000 net income, $30,000 depreciation

A company reports $200,000 net income, $30,000 depreciation, and $15,000 decrease in accounts payable. Operating cash flow is:

A. $215,000

B. $230,000

C. $245,000

D. $260,000

Answer: A

Explanation: CFO = Net income + Depreciation + Decrease in AP = $200,000 + $30,000 + $15,000 = $245,000? Wait: Decrease in AP is a use of cash → subtract.
CFO = $200k + $30k – $15k = $215,000.
Correct calculation:
Net income: $200,000
Depreciation: +$30,000
– Decrease in AP (cash outflow): –$15,000
CFO = $215,000.
Answer: A.