In its recent annual report, OrangeFresh included the following information in its balance sheets $($dollars in millions$)$:

Inventories

CONSOLIDATED BALANCE SHEETS

Accounts payable

Current Year Previous Year

Inventories

Accounts payable

$ $2,629$

$15,944$

Required:

Calculate the effects of the changes in inventory and accounts payable on cash flow from operating activities for the current

year.

Note: Enter your answers in millions. All decreases in cash flow from operations should be indicated by a minus sign.

Change

$ $2,265$

$14,656$

million

million

$$

There are $2$ steps to solve this one.

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$100\%(2$ ratings$)$

$1$st step

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Answer only

Step $1$

Effect on Cash Flow from Operations $=$

Where the change in working capital is:

Change in Working Capital $=$

Explanation:

Now let's calculate the effects of the changes in inventory and accounts payable: