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QUESTION

A business has the following financial information at the end of the year:

1.      A business has the following financial information at the end of the year:

                                                                               Prior year             Current year

               Net income                                                                          $750,000

               Depreciation expense                                                        $150,000

               Dividends paid                                                                    $550,000

               Accounts receivable                           $1,500,000          $2,000,000- increase-($500,000)

               Inventory                                             $3,500,000          $2,000,000-Decrease- $1,500,000)

               Accounts payable                               $350,000              $500,000-   Increase-$1,500,000

               Long term debt                                   $2,300,000          $3,000,000-Increase- $7,000,000

               Common stock                                   $2,200,000          $2,500,000- Increase- $3,00,000

               Retained earnings                                               $6,150,000          $6,350,000- Increase- $2,00,000

Based on the financial information presented above, How do I determine net cash flow from operating activities 

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