Interpreting the Effect of Changes in Inventories and Accounts Payable on Cash Flow from Operations
First Team Sports, Inc., is engaged in the manufacture (through independent contractors) and distribution of in-line roller skates, ice skates, street hockey equipment, and related accessory products. Its recent annual report included the following on its balance sheets:

Required:
Explain the effects of the changes in inventory and trade accounts payable on cash flow from operating activities for the currentyear.

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CONSOLIDATED BALANCE SHEETS Current Year Previous Year Inventory (Note 3) $22,813,850 $20,838,171 Trade accounts payable 9,462,883 9,015,376