00:01
In part a, we want to prepare our cash flow for our, using our indirect, sorry, using the indirect method.
00:14
First, we'll start with our net income, which is $210 ,000.
00:21
Then we need to add our depreciation, which is $62 ,500.
00:28
We need to adjust for our changes in our working capital amounts, so we're going to take $73 ,400 minus $71 ,000 to get $2 ,400.
00:43
Then if we look at our increase in inventory, we have $126 ,500 minus $140 ,000 to give us negative $13 ,500.
00:58
Then we want to look at our decrease in our prepaid expenses.
01:03
That is going to be $8 ,400 minus $7 ,800, which is $600...