Partial balance sheets and additional information are listed below for Rickey Company.

Rickey Company
Partial Balance Sheets
as of December 31
	2018			2017
Assets
Cash	$	15,500		$	35,000
Accounts receivable		80,000			65,500
Inventory		30,500			35,000
Liabilities
Accounts payable	$	57,500		$	75,000

Additional information for 2018: Net income was $155,000. Depreciation expense was $27,500.

Cash Flows from Operating Activities:
Net incomeselected answer correct	$155,000selected answer correct
Adjustment for noncash effects:
Depreciation expense selected answer correct	27,500selected answer correct
Changes in operating assets and liabilities:
Increase in inventory selected answer incorrect	4,500selected answer correct
Decrease in accounts paytable selected answer correct	17,500selected answer incorrect
not attempted	not attempted
not attempted	not attempted
Net cash flows from operating activities	$204,500