Consider the following income statement:

Net sales		$10,000
Cost of goods sold		(1,500)
Gross margin		8,500
Operating expenses	$2,000
Depreciation expense	900	(2,900)
Income before taxes		5,600
Income taxes		(1,600)
Net income		$4,000

All sales were on credit and accounts receivable increased by $600 in the current year compared to the prior year. Merchandise purchases were on credit with an increase in accounts payable of $400 during the year. Ending inventory was $500 larger than beginning inventory. Income taxes payable increased $300 during the year. All operating expenses were paid for in cash.

Requirements: Determine the following:

(a) Increase (decrease) in operating assets:

(b) Increase (decrease) in operating liabilities:

(c) Net cash flows from operations: