Answer:
$213,500
Explanation:
Given the information above, first, we'll determine increase in inventory
Increase inventory = Ending inventory - Beginning inventory
Increase inventory = $46,500 - $44,500
Increase inventory = $2,000
We will also calculate decrease in account payable
Decrease in accounts payable = Beginning accounts payable - Ending accounts payable
Decrease in accounts payable = $40,500 - $37,000
Decrease in accounts payable = $3,500
Therefore,
Net operating cash flows = Net income - Increase inventory - Decrease in accounts payable
Net operating cash flows = $219,000 - $2,000 - $3,5000 = $213,500
