Answer:
$173,150
Explanation:
Given that,
Increase in Salaries Payable = $17,000
Depreciation Expense = $5,000
Increase in Prepaid Rent = $29,000
Loss on sale of asset = $1,150
Increase in Accounts Payable = $31,000
Increase in Inventory = $82,000
Net cash flows from operating activities:
= Net income + Increase in Salaries Payable + Depreciation Expense - Increase in Prepaid Rent + Loss on sale of asset + Increase in Accounts Payable - Increase in Inventory
= $230,000 + $17,000 + $5,000 - $29,000 + $1,150 + $31,000 - $82,000
= $173,150
Therefore, the net cash flows from operating activities is $173,150.
