Based on the following information for Star Inc., what are the total net adjustments that the company would make to net income in order to derive operating cash flow?
|
Year Ended |
|||
|
Income statement item |
12/31/2010 |
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|
Net income |
$20 million |
||
|
Depreciation |
$2 million |
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|
Balance sheet item |
12/31/2009 |
12/31/2010 |
Change |
|
Accounts receivabk |
$25 million |
$22 million |
($3 million) |
|
Inventory |
$10 million |
$14 million |
$4 million |
|
Accounts payable |
$8 million |
$13 million |
$5 million |
A. Add $2 million
B. Add $6 million
C. Subtract $6 million