Nevada boot co. reported net income of $217,400 for its year ended december 31, 2018. purchases totaled $152,800. accounts payable balances at the beginning and end of the year were $36,900 and $31,200, respectively. beginning and ending inventory balances were $43,300 and $47,000, respectively. assuming that all relevant information has been presented, nevada boot would report operating cash flows of:

Operating cash flows = $208,000

Explanation:

we know here that

accounts payable balance has decreased from $36,900 and $31,200

inventory balance has increased from $43,300 and $47,000

so to find out  the operating cash flow  any decrease in current liabilities and any increase in current assets should be subtracted from net income

so

accounts payable=  current liability

and inventory = current asset

and

The operating cash flows to be reported should be computed as

Operating cash flows = Net income - Decrease in accounts payable balances - Increase in inventory balance      1

Operating cash flows =

Operating cash flows =   $217,400 - ($36,900 - $31,200) - ($47,000 - $43,300)

Operating cash flows = $208,000

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