Presented below are two independent situations.Situation A:Buffalo Co. reports revenues of $200,000 and operating expenses of $108,000 in its first year of operations, 2020. Accountsreceivable and accounts payable at year-end were $70,600 and $29,100, respectively. Assume that the accounts payable related tooperating expenses. (Ignore income taxes.)Using the direct method, compute net cash provided (used) by operating activities. (Show amounts that decrease cash flow with either a -sign e.g.-15,000 or in parenthesis e.g. (15,000).)Net cash(a)by operating activities(b)Situation B:The income statement for Carla Traveler Company shows cost of goods sold $313,100 and operating expenses (exclusive ofdepreciation) $230,000. The comparative balance sheet for the year shows that inventory increased $25,900, prepaid expensesdecreased $8,100, accounts payable (related to merchandise) decreased $16,900, and accrued expenses payable increased $10,900.Compute (a) cash payments to suppliers and (b) cash payments for operating expenses.Cash payments to suppliersCash payments for operating expensestA$tAGA

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Situation A: Buffalo Co. reports revenues of $200,000 and operating expenses of $108,000 in its first year of operations, 2020. Accounts receivable and accounts payable at year-end were $70,600 and $29,100, respectively. Assume that the accounts payable related to operating expenses. (Ignore income taxes.) Using the direct method, compute net cash provided (used) by operating activities. (Show amounts that decrease cash flow with either a - sign e.g.-15,000 or in parenthesis e.g. (15,000).) Net cash by operating activities $

Situation A: Buffalo Co. reports revenues of $200,000 and operating expenses of $108,000 in its first year of operations, 2020. Accounts receivable and accounts payable at year-end were $70,600 and $29,100, respectively. Assume that the accounts payable related to operating expenses. (Ignore income taxes.) Using the direct method, compute net cash provided (used) by operating activities. (Show amounts that decrease cash flow with either a - sign e.g.-15,000 or in parenthesis e.g. (15,000).) Net cash by 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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