Cash Flow Statement INCOME STATEMENT 2009 Adjustment Change Cash Flow Sales $ 4,500 - AA/R (100) $4,600 $ $ CGS $ 2,200 - AA/P 50 $ 2,050 +A Inventory $ (100) Operating Expenses $ $ 1,500 - Op Accrruals $ (150) $ 1,450 Includes Depreciation - A Depreciation $ 200 Interest $ 75 - Accr interest $ 75 $ $ Taxes 320 - A Deferred Taxes $ $ 320 $ $ Net Profit $ 405 Operating Cash Flow $ $ 705 Which of the following statements is true? the cash paid for goods sold to customers was less that what was reported on the income statement since A/P decreased and the firm accumulated additional inventory during the year the cash collected from customers was less than what was reported on the income statement due to the change in A/R cash generated by operations during the period was more than what was reported in the financial statements