Oakeson Company is a manufacturing firm. Work-in-process and finished goods inventories for December 31, 2013, and December 31, 2012, follow:
_______________________________________________Dec. 31, 2013 _____Dec. 31, 2012
Work-in-process inventory (including depreciation) . . . . . . . $ 70,000 ............... $ 75,000
Finished goods inventory (including depreciation) . . . . . . . . 123,000 ................. 110,000
Depreciation is a major portion of Oakeson's overhead, and the inventories listed above include depreciation in the amounts shown below.
________________________________________________Dec. 31, 2013 _____Dec. 31, 2012
Depreciation included in work-in-process inventory. . . . . . . . . $15,000 ................ $12,500
Depreciation included in finished goods inventory . . . . . . . . . . 26,000 .................. 29,000
Oakeson's net income for 2013 was $90,000. Cost of goods sold for the year included $22,000 in depreciation.
Instructions:
Compute net cash flow from operating activities for Oakeson Company for 2013. Assume that the levels of all current assets (except for inventories) and all current liabilities were unchanged from beginning of year to end of year.