Answer:
$655,000
Explanation:
Cash flow from operating activities involved all the cash flows related to the operations of the company like sales , purchases, receivable, payable etc.
Net Cash flow is the net of receipts and Payment.
Following are the operating cash flows.
Cash flows from operating activities
Net Income                                                  $460,000
Add: Non cash Expense Adjustments:
Depreciation                                                  $107,000
Change in Working Capital:
Increase in Account receivable ($77,000)
Decrease in Inventory                 $62,000
Increase in Account payable      $250,000
Less: Net Change in WC                               $235,000
Other Adjustments
Gain on sale of Land                                    <u>($147,000)</u>
Net Operating Cash flow                              <u>$655,000</u>
Depreciation is a non cash expense deducted from the revenue to calculate net income. Now it needs to be added back.