Rachel's Recordings reported net income of $200,000.Beginning balances in Accounts Receivable and Accounts Payable were $15,000 and $20,000,respectively.Ending balances in these accounts were $12,000 and $22,000,respectively.Assuming that all relevant information has been presented,Rachel's cash flows from operating activities would be:

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The decrease in Accounts Receivable ($15,000 - $12,000 = $3,000) indicates an increase in cash flow, while the increase in Accounts Payable ($22,000 - $20,000 = $2,000) also indicates an increase in cash flow. Therefore, the cash flow from operating activities is $200,000 + $3,000 + $2,000 = $205,000.

Rachel's Recordings Reported Net Income of $200,000