Cash flow from operating Activities

Phelps Corporation’s comparative balance sheet for current assets and liabilities was as follows:

                                                            Dec. 31, 2013                Dec. 31, 2012

Accounts receivable                          $22,500                          $27,000

Inventory                                               15,000                             12,900

Accounts payable                                13,500                             11,850

Dividends payable                                41,250                            44,250

  Adjust net income of $138,000 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.