The Cash Flows from Operating Activities Are Reported by the Direct

question 16

Essay

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 $375,000 and accounts receivable increased by $29,000 during the year, what was the amount of cash received from customers?
(b)If income tax expense for the current year was $39,000 and income tax payable decreased by $21,000 during the year, what was the amount of cash payments for income tax?

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Definitions:

Adolescent Egocentrism

A characteristic of adolescent thought which involves difficulty distinguishing between their perspective and that of others, often resulting in heightened self-consciousness.

Counseling Situation

is a setting or environment in which a professional provides guidance and support to individuals or groups to address personal, social, or psychological challenges.

Active Involvement

Participation or engagement in activities or processes in a physically or mentally engaged manner.