Question

The independent cases are listed below that includes all items relevant to operating activities:

	Case A				Case B				Case C
Sales revenue	$	62,000			$	52,000			$	100,000
Cost of goods sold		33,500				24,500				72,600
Depreciation expense		11,300				1,700				27,300
Salaries and wages expense		4,700				12,700				7,700
Net income (loss)		12,500				13,100				(7,600	)
Accounts receivable increase (decrease)		(1,100	)			3,700				2,700
Inventory increase (decrease)		1,700				0				(2,700	)
Accounts payable increase (decrease)		0				2,200				(1,100	)
Salaries and wages payable increase (decrease)		1,350				(1,700	)			1,100

Compute cash flows from operating activities using the direct method. (Amounts to be deducted should be indicated with a minus sign.)

Answer 1

Compute cash flows from operating activities using the direct method Particulars Case A Case B Case C Cash collected from Customers $ 63,100 $ 48,300 S 97.300 Cash payment to Suppliers $ (35,200) S (22,300) S (71,000) Cash payments to Salaries and Wages $ (3,350) S (14,400) S (6,600) Net Cash provided by Operating activities IS 24.550S 11.600S 19.700 Working Notes: Cash collected from Customers Case A Case B Case C $ 62,000 $ 52,000 $ 100.000 $ 1,100 $ 3.700) S (2.700) $ 63,100 $ 48,300 S 97,300 $ $ Sales Revenue Increase or Decrease in Accounts Receivables Cash collected from Customers Cash payment to Suppliers Cost of Goods Sold Inventory Increase/Decrease Accounts payable Increase Decrease Cash payment to Suppliers Cash payments to Salaries and Wages Salaries and Wages Expense Salaries and wages payable increase/decrease Cash payments to Salaries and Wages 33,500 S 1,700 S 35.200 S 24,500 $ S (2.200) S 22.300 S 72,600 (2.700) 1.100 71.000 IS $ S $ 4,700 $ (1,350) S 3,350 $ 12,700 S 1,700 S 14,400 S 7,700 (1.100) 6,600