The following summary information is for Numbers Company:

Instructions:
1. Compute net cash provided by (used in) operating activities for Numbers Company for the years 2008 through 2011.
2. One definition of cash flow often used in financial analysis is €œnet income + depreciation.€ Use this definition to compute cash flow for Numbers Company for the years 2008 through 2011.
3. Under what circumstances is the €œnet income + depreciation€ measure of cash flow a good estimate of actual cash flow from operations? Under what circumstances is it a particularly misleadingmeasure?

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2011 2010 2009 2008 Net income Depreciation expense Change in accounts receivable Change in inventory Change in accounts payable $90 $90 90 $90 40 40 0 +10 25 +15 40 +15 40 -30 +20 .30 20 15