=+b. Do you think that the statement of cash flows enhances the chances of Tech Trends Inc. receiving the loan? Discuss.

The Retailing Division of Most Excellent Purchase Inc. provided the following information on its cash flow from operations:

Net income $ 540,000 Increase in accounts receivable (648,000)

Increase in inventory (720,000)

Decrease in accounts payable (108,000)

Depreciation 120,000 _________ Cash flow from operating activities $(816,000) _________ _________ The manager of the Retailing Division provided the accompanying memo with this report: