Question

Elmore Company uses the direct method to prepare its statement of cash flows. Refer to the following financial statement information for the year ended December​ 31, 2017:

Elmore Company

Comparative Balance Sheet

December​ 31, 2017 and 2016

	2017	2016	Increase ​(Decrease)
Cash	​$37,100	​$20,400	​$16,700
Accounts Receivable	​26,400	​30,100	​(3,700)
Merchandise Inventory	​54,500	​27,500	​27,000
​PP&E, net	​126,000	​92,000	​34,000
Total Assets	​$244,000	​$170,000	​$74,000
Accounts Payable	​8,200	​12,200	​$(4,000)
Accrued Liabilities	​6,400	​2,400	​4,000
​Long-term Notes Payable	​71,400	​80,400	​$(9,000)
Total Liabilities	​$86,000	​$95,000	​$(9,000)
Common Stock	​$55,000	​$3,000	​$52,000
Retained Earnings	​115,000	​78,000	​37,000
Treasury Stock	​(12,000)	​(6,000)	​(6,000)
Total​ Stockholders' Equity	​$158,000	​$75,000	​$83,000
Total Liabilities and​ Stockholders' Equity	​$244,000	​$170,000	​$74,000

Elmore Company

Income Statement

December​ 31, 2017 and 2016

	2017	2016
Sales Revenue	​$290,100
Interest Revenue	​2,200
Gain on Sale of Plant Assets	​6,000
Total Revenues and Gains		​$298,300
Cost of Goods Sold	​148,200
Salaries and Wages Expense	​47,100
Depreciation Expenselong dash—Plant Assets	​16,000
Other Operating Expense	​23,700
Interest Expense	​3,500
Income Tax Expense	​7,800
Total Expenses		​246,300
Net Income		​$52,000

Use the direct​ method, to compute the total net cash flow from operating activities.​ (Accrued Liabilities relate to other operating​ expense.)

Answer 1