Bayside, Inc. 2017 Income Statement ($ in thousands) Net sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Taxes Net income $6,290 4,700 450 $1,140 42 $1,098 329 $ 769 Cash Accounts rec. Inventory Total Net fixed assets Bayside, Inc. 2016 and 2017 Balance Sheets ($ in thousands) 2016 2017 $ 165 $ 270 Accounts payable 1,190 1,030 Long-term debt 1,905 2,140 Common stock $3,260 $3,440 Retained earnings 3,900 3,740 $7,160 $7,180 Total liab. & equity 2016 2017 $1,830 $1,860 910 710 3,440 3,380 980 1,230 Total assets $7,160 $7,180 How does the inventory affect the statement of cash flows? Multiple Choice a cash outflow of $235 as an investment activity a cash inflow of $235 as an operating activity a cash outflow of $235 as an operating activity a cash inflow of $2,140 as a financing activity