E17-12 lshows cost of 1,201 million) $10,671.5 million. The comparative balance

Question

E17-12

lshows cost of 1,201 million) $10,671.5 million. The comparative balance sheet for the year shows that inventory increased $18.1 million, prepaid expenses increased $5 payable (merchandise suppliers) increased $136.9 million, and accrued expenses payable increased $160.9 million. perating expenses (including depreciation expense of 6.3 million, accounts Instructions Using the direct method, compute (a) cash payments to suppliers and (b) cash payments for operating expenses. Compute cash flow fromE17-12 The 2017 accounting records of Blocker Transport reveal these transactions and operating activities-direct method events Payment of interest Cash sales Receipt of dividend revenue Payment of income taxes Net income Payment of accounts payable 10,000 Collection of accounts receivable $182,000 48,000 Payment of salaries and wages 53,000 18,000 12,000 38,000 (LO 4) Depreciation expense Proceeds from sale of vehicles Purchase of equipment for cash Loss on disposal of vehicles Payment of dividends Payment of operating expenses 16,000 12,000 22,000 3,000 14,000 28,000 for merchandise Payment for land Instructions of the items will be used.) 115,000 74,000 Prepare the cash flows from operating activities section using the direct method. Not all Calculate cash flows-direct E17-13 The following information is taken from the 2017 general ledger of Swisher method Company Rent ex Prepaid rent, January $ 48,000 5,900 9,000 LO 4) Rent

Explanation / Answer

Cash flow from operating activities under direct method :

Cash Sales 48000 Collection from account receivable 182000 Payment of account payable for merchandise (115000) Payment of operating expense (28000) Payment of salary and wages (53000) Payment of interest (10000) Payment of income tax (12000) Net cash flow from operating activities 12000

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