Each year, Smith Enterprises (SE) prepares a reconciliation schedule that compares its income statement with its statement of cash flows on both the direct and indirect method bases. In its 2016 income statement, SE reported $440,000 for the cost of goods sold. SE paid inventory suppliers $380,000 in 2016, and its inventory balance decreased by $41,000 during the year. In its reconciliation schedule, SE should:

a		Show a $19,000 positive adjustment to net income under the indirect method for the increase in accounts payable.
b		Show a $19,000 negative adjustment to net income under the indirect method for the decrease in accounts payable.
c		Show a $19,000 positive adjustment to net income under the indirect method for the decrease in accounts payable.
d		Show a $19,000 negative adjustment to net income under the indirect method for the increase in accounts payable. Show your work

An analyst compiled the following information for Smith Inc. for the year ended December 31, 2016: Net income was $1,700,000. Depreciation expense was $400,000. Interest paid was $200,000. Income taxes paid were $100,000. Common stock was sold for $200,000. Preferred stock (8% annual dividend) was sold at par value of $250,000. Common stock dividends of $50,000 were paid. Preferred stock dividends of $20,000 were paid. Equipment with a book value of $100,000 was sold for $200,000. Using the indirect method, what was Smith Inc.'s net cash flow from operating activities for the year ended December 31, 2016?

a		$2,080,000.
b		$2,000,000.
		c $2,030,000.
	d	$2,100,000.

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