Homework SourseBalances of the current asset and current liability accounts
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 |
| Inventories | 54,000 | 47,000 |
| Accounts payable (merchandise creditors) | 43,000 | 37,000 |
| Salaries payable | 2,800 | 3,800 |
| Sales (on account) | 210,000 | |
| Cost of goods sold | 70,000 | |
| Operating expenses other than depreciation | 67,000 |
Solution
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 | 58,000 |
