2-7 Statement of cash Flows: 2001 OPERATING ACTIVITIES Net income (519,936) Adjustments Depreciation 116,960 Change in AR (280,960) Change in inventories (572,160) Change in AP 378560 Change in accruals 353600 Net cash provided by ops. (523, 936) Copy right C 2002 by Harcourt, Inc. All rights reserved2 - 7 Copyright © 2002 by Harcourt, Inc. All rights reserved. Statement of Cash Flows: 2001 OPERATING ACTIVITIES Net Income (519,936) Adjustments: Depreciation 116,960 Change in AR (280,960) Change in inventories (572,160) Change in AP 378,560 Change in accruals 353,600 Net cash provided by ops. (523,936)