Chapter 13, Problem 13.12BE

To determine

Cash flows from operating activities:

These refer to the cash received or cash paid in day-to-day operating activities of a company.

Direct method:

This method uses the basis of cash for preparing the cash flows statement. In this direct method, cash flow from operating activities is computed by using all cash receipts and cash payments during the year.

Cash Receipts:

Cash receipts encompass all the cash revenue from sale of goods, and on account receivable.

To determine: The amount of cash receipts from customers.