[volora]

XYZ Company
2007 2008
Cash 500 800
Accounts receivable 1,400 1,200
Inventory 3,900 4,400
Net fixed assets 8,200 8,200
Land 1,000 2,000
Total Assets 15,000 16,600

Notes payable 1,000 600
Accounts payable 3,000 2,000
Accruals 500 900
Long-term debt 3,600 5,400
Common Stock 2,500 2,200
Retained earnings 4,400 5,500
Total Liabilities and Equity 15,000 16,600

Given the Balance Sheets for XYZ Company above for the years ending December 31, 2007 and 2008, find Net Cash Flows from Operating Activities for 2008 assuming the following income statement data:
Net income (2008) = $3,644 and Depreciation (2008) = $903

Here's my answer to Net Cash Flows from operating but I want to know if it's right or not.

Diff changes accounts receivable, inventory, accounts payable and accruals

-400 +500 -1,000 +400 -500
Net income + depreciation 3,644 + 903 = 4,547

Answer: 4,547-500 = 4047

[morgaine300]

Your adjustments are all out of order, so I don't know what is what. Either keep them order of current assets and then current liabilities or write on them what they are. And you seemed to have skipped receivables altogether.