Problem

Consolidated Operating Cash FlowsPower Corporation owns 75 percent of Turk Company’s stock...

Consolidated Operating Cash Flows

Power Corporation owns 75 percent of Turk Company’s stock; no intercompany purchases or sales were made in 20X4. For the year, Power and Turk reported sales of $300,000 and $200,000 and cost of goods sold of $160,000 and $95,000, respectively. Power’s inventory increased by $35,000, but Turk’s decreased by $15,000. Power’s accounts receivable increased by $28,000 and its accounts payable decreased by $17,000 during 20X4. Turk’s accounts receivable decreased by $10,000 and its accounts payable increased by $4,000.

Required

Using the direct method of computing cash flows from operating activities, compute the following:

a.Cash received from customers.


b.Cash payments to suppliers.


c.Cash flows from operating activities.

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