operating activities direct method and indirect method Expert Electronics, Inc. (EEI) recognized $8,600 of sales revenue on account and collected $5,300 of cash from accounts receivable.Further, EEl recognized $4,100 of operating expenses on account and paid $2,300 cash as partial settlement of accounts payable.RequiredBased on this information alone:a. Prepare the operating activities section of the statement of cash flows under the direct method. (Amounts to be deducted shouldbe indicated with a minus sign.)Operating Activities - Direct MethodCash flows from operating activities:Net cash flow from operating activitiesb. Prepare the operating activities section of the statement of cash flows under the indirect method. (Amounts to be deducted shouldbe indicated with a minus sign.)Operating Activities - Indirect MethodCash flows from operating activities:Net cash flow from operating activities

Answer :a. Operating section of cash flow statement - Direct method : Particular Amount $ Cash…

Further, EEl recognized $4,100 of operating expenses on account a Required Based on this information alone: a. Prepare the operating activities section of the statement of cash. be indicated with a minus sign.) Operating Activities - Direct Method Cash flows from operating activities:

Further, EEl recognized $4,100 of operating expenses on account a Required Based on this information alone: a. Prepare the operating activities section of the statement of cash. be indicated with a minus sign.) Operating Activities - Direct Method Cash flows from operating activities:

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter12: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12.21MCE

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