Question

Augu Golls 422 Example: Cash Flows in Oper Selected financial information follows Prepare the Operating Activities Sex lows in Operating Activities (Direct Method) Information follows for Capital de December 31, 2017 perating Activities section the cashiestatement using the Direct Method increase / 2017 2016 Decrease Current Assets Cash 18.000 38.000 56,000 Accounts Receivable 69.000 25,000 44,000 43,000 Inventory 9.000 52.000 Prepaid Expenses 8,000 10,000 (2.000) Current Liabilities Accounts Payable Accrued Payables 51,000 27,000 12,000 (24,000) 12.000 CAPITAL LTD. Income Statement For the Year Ended December 31, 2017 $ Sales Revenue Cost of Goods Sold Gross Profit 915,000 400,000 515,000 $ Operating expenses Depreciation expense Loss on sale of equipment Profit from operations 175,000 30,000 1,500 206,500 308,500 $ $ Other expenses Interest expense Profit before income tax Income tax expense Profit 15,000 293,500 88,000 205,500 $

Answer 1

Capital Ltd
Cash Flow Statement (Direct Method)
As of December 31, 2017
Cash flows from operating activities
Cash received from customers	$ 871,000
Cash paid to suppliers	$ -467,000		400000+24000+43000
Cash paid for operating expense	$ -161,000		175000-2000-12000
Cash paid for interest expenses	$   -15,000
Cash paid for income tax expenses	$   -88,000
Net cash provided by operating activities		$ 140,000

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