| Description |
Based on the information in Exhibit 1 for Star Inc., what are the total net ad-
justments that the company would make to net income to derive operating cash
flow?
<table style="width:90%;text-align:center">
<caption>Exhibit 1: Star Inc.</caption>
<tr><td></td><th colspan="3">Year Ended</th></tr>
<tr><td class="left">Income statement</td><td></td><td></td><td></td></tr>
<tr><td class="left">item </td><td></td><td>12/31/2018</td><td></td></tr>
<tr><td class="left">Net income</td><td> </td><td>USD20 million</td><td></td></tr>
<tr><td class="left">Depreciation</td><td></td><td> USD2 million</td><td></td></tr>
<tr><td class="left"></td><td></td><td></td><td></td></tr>
<tr><td class="left">Balance sheet item </td><td>12/31/2017 </td><td>12/31/2018</td><td> Change</td></tr>
<tr><td class="left">Accounts receivable </td><td>USD25 million </td><td>USD22 million </td><td>USD3 million</td></tr>
<tr><td class="left">Inventory </td><td>USD10 million </td><td>USD14 million </td><td>(USD4 million)</td></tr>
<tr><td class="left">Accounts payable </td><td>USD8 million</td><td> USD13 million</td><td> USD5 million</td></tr>
</table> |