Balances of the current asset and current liability accounts at the end and begi
ID: 2410439 • Letter: B
Question
Balances of the current asset and current liability accounts at the end and beginning of the year are as follows:
End
Beginning
$67,000
$73,000
73,000
60,000
54,000
47,000
43,000
37,000
2,800
3,800
210,000
70,000
67,000
Use the direct method to prepare the cash flows from operating activities section of a statement of cash flows. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.
End
Beginning
Cash$67,000
$73,000
Accounts receivable (net)73,000
60,000
Inventories54,000
47,000
Accounts payable (merchandise creditors)43,000
37,000
Salaries payable2,800
3,800
Sales (on account)210,000
Cost of goods sold70,000
Operating expenses other than depreciation67,000
Explanation / Answer
SOLUTION:
Cash flows from operating activities: Cash received from customers 197,000 Minus: Cash payments -merchandise 71,000 Cash payments for operating exp 68,000 139,000 Net cash flow from operating activities 58,000Related Questions
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