Question

Consider the following information:


Income Statement Information: Other Information:
Net Sales Revenue $200,000 Increase in Accounts Receivable $ 200
Cost of Goods Sold 60,000 Decrease in Inventory 600
Gross Margin 140,000 Increase in Prepaid Expense 700
Salary Expense 60,000 Decrease in Accounts Payable 2,200
Depreciation Expense 30,000 Decrease in Accrued Liabilities 800
Other Expense 20,000 Increase in Income Taxes Payable 1,900
Net Income Before Tax 30,000 Reduction of Long-Term Debt 13,700
Income Tax Expense 9,000 Purchases of Equipment 29,000
Net Income $ 21,000

Required:

Use the direct method to compute the amount of net cash flows provided by (used in) operating activities.

Answer

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