Answer:
$88,000
Explanation:
Calculation for the net operating cash flows
NET CASH FLOW FROM OPERATING ACTIVITIES
Net Income $115,000
The Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation Expense $6,000
Gain on sale of asset $1,000
Increase in Salaries Payable $15,000
Less Increase in Prepaid Rent ($24,000)
Increase in Accounts Payable $25,000
Less Increase in Inventory ($50,000)
Net Operating Cash Flows $88,000
Therefore the net operating cash flows is $88,000
