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Let's work through both questions one by one.

### Question 3:
Frederick, Inc. provides the following details:
- **Net Income**: $63,600
- **Depreciation expense**: $30,000
- **Accounts receivable decreased**: $1,650 (This increases cash flow by $1,650)
- **Inventory increased**: $3,300 (This decreases cash flow by $3,300)
- **Dividends paid**: $8,500 (This doesn't affect cash flow from operations since it is a financing activity)
- **Accounts payable decreased**: $3,000 (This decreases cash flow by $3,000)
- **Taxes payable increased**: $4,400 (This increases cash flow by $4,400)

The formula for calculating cash flow from operations is as follows:

\[
\text{Cash Flow from Operations} = \text{Net Income} + \text{Depreciation} + (\text{Decrease in Accounts Receivable}) + (\text{Decrease in Accounts Payable}) + (\text{Increase in Inventory}) + (\text{Increase in Taxes Payable})
\]

Substitute the values:

\[
\text{Cash Flow from Operations} = 63,600 + 30,000 + 1,650 - 3,300 - 3,000 + 4,400
\]

Let me calculate that:

\[
63,600 + 30,000 + 1,650 - 3,300 - 3,000 + 4,400 = 93,350
\]

So, the cash flow from operations is **$93,350**.

### Question 4:
- **Net Income**: $216,000
- **Increase in Accounts Receivable**: $88,000 (An increase in accounts receivable decreases cash flow by $88,000)

The change in cash flow is calculated by subtracting the increase in accounts receivable from the net income.

\[
\text{Operating Cash Flow} = 216,000 - 88,000 = 128,000
\]

Thus, the change in operating cash flow is a **$128,000 increase**.

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Would you like any further details on these solutions or have any other questions?

Here are 5 related questions to further your understanding:
1. How does an increase in inventory affect cash flow?
2. Why is depreciation added back to net income in the cash flow from operations?
3. How do changes in liabilities like accounts payable affect cash flow?
4. Why are dividends not included in cash flow from operations?
5. How do taxes payable impact the cash flow statement?

**Tip**: Always keep track of non-cash items like depreciation when calculating cash flow, as they are added back to net income.

Frederick, Inc. reported net income totaling $63,600. Depreciation expense for the year was $30,000. Accounts receivable decreased by $1,650, inventory increased by $3,300, dividends paid totaled $8,500, accounts payable decreased by $3,000, and taxes payable increased by $4,400. How much is the company’s cash flow from operations?

Discover how to calculate cash flow from operations using Frederick, Inc.'s data. The problem involves accounting for changes in accounts receivable, inventory, and liabilities, and it is suitable for accounting students at the college level.

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