Using the excerpt from the Animal World Company statement of cash flows analyze thoroughly the cash flow from operating activities. Be sure to offer possible reasons for the changes identified.

Operating Activities	2015	2014
Net income	$(2,800)	$(9,800)
Depreciation and amortization	21,800	21,700
Loss on disposal of property and equipment	11,000	3,100
Increase (decrease) in cash resulting from changes in:
Accounts receivable	(10,100)	(9,200)
Inventories	(35,500)	(56,500)
Accounts payable and accrued expenses	54,700	24,200
Net cash provided (used) by operating activities