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Lets Do This, Inc. had an operating income of $35,000 for the year just ended. Balances in the companys current asset and c

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Answer #1
Computation of cash received from customers.
ParticularsAmount
Beginning accounts receivables$125,000.00
Add: Sales Revenues$350,000.00
Less: Ending accounts receivables$106,000.00


Cash received from customers$369,000.00
Computation of cash paid for inventory
ParticularsAmount
Cost of Goods Sold$210,000.00
Add: Ending inventory$180,000.00
Less: Beginning inventory$213,000.00


Purchases made during the year$177,000.00
Add: Opening accounts payable$210,000.00
Less: Ending accounts payable$195,000.00


Cash paid to the supplier for inventory$192,000.00
Let's do this, Inc.

Statement of Cash Flows (Direct Method) (Partial)

ParticularsDetailsAmount
Cash Flows from operating activities:

Cash Inflows:

Cash received from customers$369,000.00
Cash Outflows:

Cash paid to the supplier for inventory-$192,000.00
Cash paid for Operating expenses ($140,000 - $35,000 - $8,000)-$97,000.00



Net Cash flow from operating activities
$80,000.00


answered by: Brennan Nickel
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