Eta Electronics is suspected of misstating their cash flow. The cash flow statement shows $2,200,000 in operating cash flow, but a detailed review suggests it should be $1,900,000. There are $200,000 in unrecorded cash outflows and $100,000 in fictitious cash inflows.

Requirement: Adjust the cash flow figures and discuss the consequences of misreporting cash flow on the company's financial health.

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