Do you prefer to work alone or as a member of a team? Explain.

b. $72,700.

Explanation:

Cash flow from operating activities involved all the cash flows related to the operations of the company like sales , purchases, receivable, payable etc.

We make some adjustment in the net income for the period to calculate the cash flow from operating activities.

These adjustments includes all non cash expenses and working capital changes.

Working Capital Accounts Changes

Account                         January 1, 2021   December 31, 2021

Accounts Receivables    $20,000            $15,300  decreased by $4,700

Account Payable             $11,500              $14,500  Increased by $3,000

First we need to calculate the Net Income

Sales                                     $155,000

Purchases                             $90,000

Net Income                                                   $65,000

Decrease in Account Receivables $4,700

Increase in Account Payable          $3,000

                                                                      $7,700    

Net Cash flow from operating activities      $72,700