The two independent cases are listed below: Case A Case B Year 2 Year 1 Year 2 Year 1 Sales Revenue $ 11,200 $ 9,200 $ 22,000 $ 18,200 Cost of Goods Sold 6,100 5,600 12,400 11,100 Gross Profit 5,100 3,600 9,600 7,100 Depreciation Expense 1,020 1,020 1,520 1,520 Salaries and Wages Expense 2,600 2,020 5,200 5,020 Net Income 1,480 560 2,880 560 Accounts Receivable 310 410 760 610 Inventory 760 510 750 810 Accounts Payable 820 720 810 870 Salaries and Wages Payable 1,200 1,220 210 260 Compute the net cash flow from operating activities section of the Year 2 statement of cash flows using the direct method. (Amounts to be deducted should be indicated with a minus sign.)

                                                             Case A                       Case B

                                                     Year 2       Year 1         Year 2       Year 1

Sales Revenue                             $11,200    $9,200    $22,000    $18,200

Cost of Goods Sold                         6,100      5,600        12,400       11,100

Gross Profit                                      5,100      3,600         9,600        7,100

Depreciation Expense                    1,020       1,020          1,520        1,520

Salaries and Wages Expense       2,600       2,020        5,200       5,020

Net Income                                     1,480           560        2,880          560

Accounts Receivable  (100) 150       310            410           760           610

Inventory                      250 (60)      760            510           750           810

Accounts Payable       100 (60)       820           720            810           870

Wages Payable            (20) (50)    1,200         1,220            210           260

Cash flow Case A = $1,480 (net income) + $1,020 (depreciation) + $100 (accounts receivable decrease) - $250 (inventory increase) + $100 (accounts payable increase) - $20 (wages payable decrease) = $2,430

Cash flow Case B = $2,880 (net income) + $1,520 (depreciation) - $150 (accounts receivable increase) + $60 (inventory decrease) - $60 (accounts payable decrease) - $50 (wages payable decrease) = $4,200

answer; ///i believe the correct answer is (c) laissez-faire;