Answer: $202,700
Explanation:
Given that,
Dec. 31, Year 2 Dec. 31, Year 1
Accounts receivable $27,830 $33,340
Inventory $18,140 $15,290
Accounts payable $15,680 $13,780
Dividends payable $49,220 $52,490
Adjust net income = $198,140
Net cash flow from operating activities:
= Net income + Decrease in Accounts receivable - Increase in inventory + Increase in accounts payable
= $198,140 + $5,510 - $2,850 + $1,900
= $202,700
