Cash Flows from (Used for) Operating Activities-Direct Method The cash flows from (used for) operating activities are reported by the direct method on the statement of cash flows. Determine the following: a. If sales for the current year were $668,000 and accounts receivable decreased by $37,400 during the year, what was the amount of cash received from customers? $ b. If income tax expense for the current year was $54,900 and income tax payable decreased by $6,600 during the year, what was the amount of cash paid for income taxes? c. Briefly explain why the cash received from customers in part (a) is different from sales. Because the customers paid exceeded is less than than the amount of sales for the period, cash received from customers sales made on account by $37,400 during the current year.

Cash Flows from (Used for) Operating Activities-Direct Method The cash flows from (used for) operating activities are reported by the direct method on the statement of cash flows. Determine the following: a. If sales for the current year were $668,000 and accounts receivable decreased by $37,400 during the year, what was the amount of cash received from customers? $ b. If income tax expense for the current year was $54,900 and income tax payable decreased by $6,600 during the year, what was the amount of cash paid for income taxes? c. Briefly explain why the cash received from customers in part (a) is different from sales. Because the customers paid exceeded is less than than the amount of sales for the period, cash received from customers sales made on account by $37,400 during the current year.

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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