The Cash Flows from Operating Activities Are Reported by the Direct

question 81

Short Answer

The cash flows from operating activities are reported by the direct method on the statement of cash flows.Determine the following:
a.If sales for the current year were $700,000 and accounts receivable increased $25,000 during the year,what was the amount of cash received from customers?
b.If sales salaries expense for the current years was $70,000 and sales salaries payable increased $25,000 during the year,what was the amount of cash payments for sales salaries?

---

Definitions:

Free Market Forces

The natural regulatory mechanisms of a free market economy, driven by supply, demand, and competition.

Social Movement Unionism

A trend within labor movements that emphasizes broader social justice issues beyond just the workplace, linking labor struggles with other social and political movements.

Bargaining Power

The capacity of one party in a negotiation to influence the agreement terms due to its strength or position.

Labor Protection

Laws and regulations designed to safeguard workers' rights, health, and safety in the workplace.