Both a 10 dollar increase in Deprecation and a 10 dollar increase in Inventory

What is your Operating Cash Flow, assuming you buy the Inventory with Cash,

XYZ Corp. Consolidated Statement of Income Before After $1,000 700 $300 150 Sales Cost of Goods Sold Gross Profit Operating Expenses Depreciation & Amortization Operating Income Interest Expense Pre-tax Income Tax Expense @ 30% Net Income $150 30 120 36 $84 XYZ Corp. Consolidated Statement of Cash Flows Before After 84 OPERATING ACTIVITIES Net Income Depreciation & Amortization Change in Operating Assets and Liabilities Cash From Operating Activites (16) $68 INVESTING ACTIVITIES Capital Expenditures Disposal of PPE Cash From Investing Activities (30) 10 (20) FINANCING ACTIVITIES Proceeds from Debt Dividends Share Repurchases Cash From Financing Activities 50 (10) (5) $35 Change in Cash $83 XYZ Corp. Consolidated Balance Sheet Before After Assets Current Assets Cash Accounts Recievable Inventory Total Current Assets 100 50 30 180 730 Property and Equipment, net Total Assets $910 Liabilities Current Liabilites Accounts Payable 50 40 Wages Payable Total Current Liabilites $90 Long Term Debt Total Liabilties $300 $390 1 Shareholders Equity Common Stock @ 0.01 Par Value Additional Paid in Capital Retained Earnings Total Shareholders Equity 199 320 $520 Total Assets $910 $390 Total Liabilties Total Shareholders Equity $ 520