Final answer:
The company's cash flow from operating activities is $120,000, calculated by adding the net income ($100,000) to the non-cash depreciation expense ($20,000).
Step-by-step explanation:
The company's cash flow from operating activities can be calculated by adjusting the net income for changes in working capital and non-cash expenses. In this case, there is a non-cash expense, which is the depreciation expense. Since depreciation doesn't affect cash, we add it back to the net income. Hence, cash flow from operating activities is calculated as:
Net Income + Depreciation Expense = Cash Flow from Operating Activities
$100,000 + $20,000 = $120,000
However, since the taxes also affect cash flow and there is no mention of taxes already being deducted from net income, it is wise to consider them. But since the question doesn't provide any information if taxes are already deducted in net income, we'll assume taxes are already accounted for in the net income figure provided for a direct cash flow calculation.