Answer:
$726,100
Explanation:
Preparation of the operating activities section of the 2021 statement of cash flows.
Cash Flow from Operating Activities
Net Income $634,000
Adjustments:
Depreciation and amortization $89,000
Changes in operating asset and liabilities
Decrease in Account receivable $24,000
Increase in Inventory $ (9,400)
Increase in Prepaid expenses $ (8,700)
Increase in Salaries payable $10,200
Decrease in Income tax payable $ (13,000)
Operating activities $726,100
Therefore the operating activities section of the 2021 statement of cash flows will be $726,100
