Answer:
122,500
Explanation:
The formula for cashflow from operations (CFO) calculated by indirect:
CFO = NI + NCC - WCInV, where:
<em>NI: Net income;</em>
<em>NCC: Non-cash charges, which is depreciation in this exercise;</em>
<em>WCInv: Working capital investments, which is calculated as Changes in inventories + Changes in receivables - Changes in payables.</em>
Putting all the numbers together, we have:
CFO = 109,000 + 18,300 - [(-14,800)-(-19,600)] = 109,000 + 18,300 + 14,800 - 19,600 = 122,500
<em>Note: Gain on disposal of equiment is a part of cash flow from investing activities rather than operating activities.</em>