Problem

Given the following selected information on Cicalese,s Chocolate , Inc., calculate cash flow from operating activities for the year 20X1.

                                          Dec 31, 20x0               Dec 31, 20x1

EAT                                    $600,000                    $780,000

Depreciation exp.                 $100,000                    $120,000

Dividends                            $400,000                   $550,000

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

Inventory                            $3,500,000                $2,000,000

Accts Payable and accruals    $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