Answer:
Operating cash flows = $208,000
Explanation:
we know here that
accounts payable balance has decreased from $36,900 and $31,200
inventory balance has increased from $43,300 and $47,000
so to find out the operating cash flow any decrease in current liabilities and any increase in current assets should be subtracted from net income
so
accounts payable= current liability
and inventory = current asset
and
The operating cash flows to be reported should be computed as
Operating cash flows = Net income - Decrease in accounts payable balances - Increase in inventory balance ....................1
Operating cash flows =
Operating cash flows = $217,400 - ($36,900 - $31,200) - ($47,000 - $43,300)
Operating cash flows = $208,000
