Question

Statement of Cash Flows (Direct Method) The Wolff Company's income statement and comparative balance sheets at December 31 of 2013 and 2012 are shown below: WOLFF COMPANY Income Statement For the Year Ended December 31, 2013 Sales Revenue $825,500 Cost of Goods Sold $559,000 Wages Expense 111,800 Insurance Expense 10,400 Depreciation Expense 22,100 Interest Expense 11,700 Income Tax Expense 37,700 752,700 Net Income $72,800 WOLFF COMPANY Balance Sheets Dec. 31, 2013 Dec. 31, 2012 Assets Cash $14,300 $6,500 Accounts Receivable 53,300 41,600 Inventory 117,000 78,000 Prepaid Insurance 6,500 9,100 Plant Assets 325,000 253,500 Accumulated Depreciation (88,400) (66,300) Total Assets $427,700 $322,400 Liabilities and Stockholders' Equity Accounts Payable $9,100 $13,000 Wages Payable 11,700 7,800 Income Tax Payable 9,100 10,400 Bonds Payable 169,000 97,500 Common Stock 117,000 117,000 Retained Earnings 111,800 76,700 Total Liabilities and Stockholders' Equity $427,700 $322,400
I only need help with part B. Cash Flow From Operating Expenses, thank you!

Answer 1

	Statement of cash flow
	WOLFF Company
Cash flow from operating activities
Cash received from customers					813,800
Cash paid for merchandise purchase				-601,900
Cash paid to employees				-107,900
Cash paid as insurance				-7,800
cash paid for interest				-11,700
cash paid as income tax				-39,000	-768,300
Cash provided by operating activities					45,500
Cash flow from investing activities
purchase of plant assets					-71,500
Cash flow from financing activities
Issuance of Bonds payable				71,500
Payment of Dividends				-37,700
Cash provided by financing activities					33,800
Net change in cash					7,800
cash at beginning of the year					6,500
Cash at end of year					14,300

Working

Cash received from customers
sales				825,500
less increase in accounts receivable				-11700
Cash received from customers				813,800
Cash paid for merchandise purchase
Cost of goods sold				559,000
Add :increase in inventory				39000
Add: Decrease in accounts payable				3900
Cash paid for merchandise purchase				601,900
Cash paid to employees
Wage expense				111,800
less: increase in wages payable				-3900
Cash paid to employees				107,900
Cash paid as insurance
insurance expense				10,400
less: decrease in prepaid insurance				-2600
Cash paid as insurance				7,800
cash paid for interest
interest expense				11,700
cash paid as income tax
income tax expense				37,700
Add : decrease in income taxes payable				1300
cash paid as income tax				39,000