Question

Adjust net income of $198,140 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required.

Answer 1

Step-by-step explanation:

From your text,

Net income = 198140

The Adjustment to reconcile net income to net cash flow from operating activities

Income statement items effecting

Increases account receivable = -5510

Increase inventory = -2850

Increase account payable = 1900

Net cash flow from operating activities = 191680.