2. Cash Flows. Canyon Tours showed the following components of working capital last year: (LO2)

a. What was the change in net working capital during the year?

b. If sales were $36,000 and costs were $24,000, what was cash flow for the year? Ignore taxes. 3. Cash Flows. Tubby Toys estimates that its new line of rubber ducks will generate sales of $7 million, operating costs of $4 million, and a depreciation expense of $1 million. If the tax rate is 35%, what is the firm's operating cash flow? Show that you get the same answer using all three methods to calculate operating cash flow. (LO2)

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Accounts receivable Inventory Accounts payable Beginning $ 24,000 End of Year $23,000 12,000 12,500 14,500 16,500