Use this information for the following eight questions, in order to get from net income to cash flow for operating activities:

Net Income $220,000

Depreciation 40,000

Increase (decrease) in:

Accounts receivable 130,000

Inventories (25,000)

Prepaid expenses 15,000

Accounts payable (120,000)

Salaries payable 25,000

Other current liabilities 60,000

1) In getting from net income to cash flow from operating activities, should we add or subtract depreciation?

a) neither

b) subtract

c) add

2) In getting from net income to cash flow from operating activities, should we add or subtract the $130,000 change in accounts receivable?

a) subtract

b) add

c) neither

3) In getting from net income to cash flow from operating activities, should we add or subtract the $25,000 change in inventories?

a) subtract

b) neither

c) add

4) In getting from net income to cash flow from operating activities, should we add or subtract the $15,000 change in prepaid expenses?

a) subtract

b) add

c) neither

5) In getting from net income to cash flow from operating activities, should we add or subtract the $120,000 change in accounts payable?

a) subtract

b) add

c) neither

6) In getting from net income to cash flow from operating activities, should we add or subtract the $25,000 change in salaries payable?

a) neither

b) subtract

c) add

7) In getting from net income to cash flow from operating activities, should we add or subtract the $60,000 change in other current liabilities?

a) subtract

b) neither

c) add

8) How much is cash flow from operating activities in 2017?

a) 65,000

b) 220,000

c) 45,000

d) 415,000

e) 105,000