Answer:
a)
net cash decrease between 2018 and 2019 = $19,000 - $47,000 = -$28,000
net cash decrease = operating cash flow + investing cash flow + financing cash flow
-$28,000 = operating cash flow - $100,000 + $220,000
-$28,000 = operating cash flow + $120,000
operating cash flow = -$148,000
b)
operating cash flow = net income + depreciation expense + increase in accruals - increase in inventories and receivables
-$148,000 = net income + $53,000 + $45,000 - $155,000
-$148,000 = net income - $57,000
net income = -$91,000 (net loss)
