Statement of Cash Flows Ann\'s Flowers Inc. reported 2008 net income of $2.60 mi

Question

Statement of Cash Flows Ann's Flowers Inc. reported 2008 net income of $2.60 million and depreciation of $266,000. The top part Ann's Flowers, Inc.'s 2007 and 2008 balance sheets is listed below (in millions of dollars).

7.60

5.80

12.68

9.24

What is the 2008 net cash flow from operating activities for Ann's Flower's, Inc.?

  Current assets: 2007 2008   Current liabilities: 2007 2008   Cash and marketable securities $4.60 $2.80   Accrued wages and taxes $1.16 $1.16   Accounts receivable 4.80 6.60   Accounts payable 3.16 4.80   Inventory

7.60

5.80

  Notes payable

12.68

9.24

  Total $17.00 $15.20   Total $17.00 $15.20

Explanation / Answer

Net income 2,600,000 Add:depreciation $266000 Less:increase in AR(6.6-4.8)million (1,800,000) Add:decrease in inventory(7.6-5.8)million 1,800,000 Add:increase in AP(4.8-3.16)million 1,640,000 Net cash flow from operating activities $4,506,000.

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