=+SA 16-3 Analysis of statement of cash flows 760 Chapter 16 Statement of Cash Flows As a close family friend, Walker asked you to prepare a statement of cash flows.

From the records provided, you prepared the following statement:

Tech Trends Inc.

Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities:

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $100,000 Adjustments to reconcile net income to net cash flow from operating activities:

Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,000 Gain on sale of investments . . . . . . . . . . . . . . . . . . . . . . . . . (10,000)

Changes in current operating assets and liabilities:

Decrease in accounts receivable . . . . . . . . . . . . . . . . . . . . 7,000 Increase in inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . (14,000)

Increase in accounts payable . . . . . . . . . . . . . . . . . . . . . . . 10,000 Decrease in accrued expenses payable . . . . . . . . . . . . . . . (2,000) ________ Net cash flow from operating activities . . . . . . . . . . . . . . . . . . . $119,000