Chapter 6, Problem 6.26BE

Statement of Cash Flows, Direct Method. Use the information from BE6-25 to compute the net cash flow from operating activities for Tennis Emporium under the direct reporting format.

BE6-25. Statement of Cash Flows, Indirect Method. Tennis Emporium provided the following information for the current year.

Tennis Emporium Statement of Net Income for the Current Year Ended	Amount
Sales	$767,000
Depreciation Expense	(52,000)
Selling, General, and Administrative Expanses	(688,000)
Operating Income	27,000
Tax Expense	(6,000)
Net Income	$21,000
Changes in Balance Sheet Accounts
Increase in Accounts Receivable	$10,000
Increase in Accounts Payable (Related to Selling, General, and Administrative Expenses)	$ 5,000
Decrease in Income Taxes Payable	$ 3,000

Compute the net cash flow from operating activities for Tennis Emporium under the indirect reporting format.