The accounting records of the Cuddly Trading Post Company include these accounts:

$($Click the icon to view the accounts.$)$

Requirement

from operations? How can you tell?

Cash flows from operating activities:

Net income

Adjustment to reconcile net income to

net cash provided by $($used for$)$ operating activities:

Depreciation

Increase in accounts receivable

Increase in inventory

Increase in accounts payable

Decrease in accrued liabilities

Net cash provided by $($used for$)$ operating activities

Do you see any potential problems in the company's cash flows from operations? How can you tell?

may have difficulty paying creditors in the future $.$ Overall, operations generated a positive net cash flow, which is a favorable sign.

Data table