The following summary information is for Data Company:

Instructions:
1. Compute net cash provided by (used in) operating activities for Data Company for the years 2005 through 2008.
2. One definition of cash flow often used in financial analysis is €œnet income + depreciation.€ Use this definition to compute cash flow for Data Company for the years 2005 through 2008.
3. Under what circumstances is the €œnet income _ depreciation€ measure of cash flow a good estimate of actual cash flow from operations? Under what circumstances is it a particularly misleadingmeasure?

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2008 2007 2006 2005 $85 30 85 30 Net income Depreciation expense Change in accounts receivable Change in inventory Change in accounts payable 85 $ 85 30 30 +20 0 +10 +15 +20 +25 +10