A. This answer results from including all of the depreciation booked during the year as an increase to net income. Only the depreciation that was expensed should be added to net income.

B. This answer results from adjusting both beginning and ending inventory for depreciation included in them. Only ending inventory should be adjusted.

C. This answer results from failing to adjust ending inventory for the depreciation included in it. Ending inventory should be reduced by the amount of the depreciation included.

D. Net cash flow from operating activities, using the indirect method, is:

The increase in inventory is calculated as: Ending inventory excluding depreciation ($19m,400) minus beginning inventory including depreciation ($18,500).