IC LUNDHOLM COMPANY Statement of Cash Flows Operating activities: Net incomes 840.00 Adjustments: Depreciation 225.00 Increase in accounts receivable (450.00) Decrease in inventory 900.00 Increase in prepaid rent (600.00) Increase in accounts payable 150.00 Decrease in salaries and wages payable (45.00) Increase in taxes payable 561.00 Total adjustments 741.00 Cash flows from operating activities 1,581.00