Answer:
Cash flow from operating activities
Net income $310,000
<u><em>Adjustment to reconcile net income to</em></u>
<u><em>net cash provided by operating activities</em></u>
Depreciation expense $70,000
Decrease in account receivable $300,000
Decrease in inventory $620,000
Increase prepaid expense -$150,000
Decrease account payable -$280,000
Decrease accured expense payable -<u>$110,000 </u> <u>$450,000</u>
Net cash outflow from operating activities <u>$760,000</u>