Answer:
Net cash flows from Operating activities = $139,000
Explanation:
Statement of Cash Flows
<u>Cash-flows from Operating activities</u>
Net income for the year $100,000
<u>Adjustment for non-cash effects</u>
Depreciation expenses $50,000
Decrease in Accounts receivables $4,000
Increase in Inventory -$20,000
Decrease in Prepaid rent $2,000
Increase in Accounts payable $8,000
Decrease in Income tax payable <u>-$5,000</u> <u>$39,000</u>
Net cash flows from Operating activities <u>$139,000</u>