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QUESTION

Given the following selected information on Cicalese's Chocolate, Inc., calculate Cash Flow from Operating Activities for 2001. EAT 600,000 730,000...

Given the following selected information on Cicalese's Chocolate, Inc., calculate Cash Flow from Operating Activities for 2001.

EAT             600,000                     730,000

Depreciation Exp.             100,000                     150,000

Dividends             400,000                     550,000

Accounts Receivable          1,500,000                  2,000,000

Inventory          3,500,000                  2,000,000

Accts. Payable/Accr.             350,000                     500,000

Long-Term Debt          2,300,000                  3,000,000

Common Stock          2,200,000                  2,500,000

Retained Earnings          6,150,000                  6,350,000

I used the formula EAT + Depreciation +A/R + Inventory + AP accruals but I am not reaching to the correct answer 2,030,000

I calculated the following adjustment and add them up

Depreciation and amortization..............................................150,000

Increase in Acc. receivables (2,000,000 - 1,500,000).............500,000

Decrease in inventories (3,500,000 - 2,000,000)......................-1,500,000

Increase in Acc payable's (500,000 - 350,000)......................150,000   I added (150,000+500,000+1,500,000+150,000)=2,300,000 then I added EAT 730,000 =3,030,000

Would you please let me know where is my mistake that not resulted in 2,030,000

Thanks,

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