Answer:
The net cash flows from operating activities last year was <u>$161,000</u>.
Explanation:
CASH FLOWS FROM OPERATING ACTIVITIES $
Net Income 88,000
<em>Adjustments to reconcile net income to </em>
<em>net cash provided by operating activities: </em>
Depreciation on Fixed Assets 62,000
<em>(Increase) Decrease in Current Assets:</em>
Accounts Receivables 11,000
Inventory (6,000)
Prepaid Expenses 0
<em>Increase (Decrease) in Current Liabilities:</em>
Accounts Payable 1,000
Accrued Liabilities (5,000)
Taxes Payable 10,000
NET CASH PROVIDED BY OPERATING ACTIVITIES 161,000