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.
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Operating Activities
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2017
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2016
|
|
Net income
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$(2,800)
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$(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:
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|
|
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Accounts receivable
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(10,100)
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(9,200)
|
|
Inventories
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(35,500)
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(56,500)
|
|
Accounts payable and accrued expenses
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54,700
|
24,200
|
|
Net cash provided (used) by operating activities
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$39,100
|
$(26,500)
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