**Balances of the Current Asset and Current Liability Accounts**The balances at the end and beginning of the year are as follows:| Account | End | Beginning ||------------------------------------------|-----------|-----------|| Cash | $62,000 | $73,000 || Accounts Receivable (net) | 75,000 | 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 Merchandise Sold | 70,000 | - || Operating Expenses Other Than Depreciation| 67,000 | - |**Instructions:**Use the direct method to prepare the operating activities section of a statement of cash flows. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.**Cash Flows From The Operating Activities Section:*** Cash flows from (used for) operating activities: - [Dropdown/Selection 1] $________ - [Dropdown/Selection 2] $________ - [Dropdown/Selection 3] $________ - [Dropdown/Selection 4] $________

The cash flow statement is prepared to record the cash flow from various activities during the period. Cash Flow Statement (Partial) Cash flow from operating activities Cash receipts from customers (73,000 + 210,000 - 62,000) 221,000 Cash payment to suppliers (77,000 + 37,000 - 43,000) (71,000) Cash payment for operating expenses (67,000 + 3,800 - 2,800) (68,000) Net Cash provided by operating activities 82,000 Working notes : Inventory purchase = cost of goods sold + ending inventory - Beginning inventory = 70,000 + 54,000 - 47,000 = 77,000

Business

Accounting

Balances of the current asset and current liability accounts at the end and beginning of the year are as follows: End Beginning Cash $62,000 $73,000 Accounts Receivable (net) 75,000 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 Merchandise Sold 70,000 Operating Expenses Other Than Depreciation 67,000 Use the direct method to prepare the operating activities section of a statement of cash flows. Use the minus sign to indicate cash out flows, cash payments, decreases in cash Cash Flows From The Operating Activities Section Cash flows from (used for) operating activities:

Balances of the current asset and current liability accounts at the end and beginning of the year are as follows: End Beginning Cash $62,000 $73,000 Accounts Receivable (net) 75,000 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 Merchandise Sold 70,000 Operating Expenses Other Than Depreciation 67,000 Use the direct method to prepare the operating activities section of a statement of cash flows. Use the minus sign to indicate cash out flows, cash payments, decreases in cash Cash Flows From The Operating Activities Section Cash flows from (used for) operating activities:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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