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:

Dopamine Overactivity

A condition in which there is an excess of dopamine activity in the brain, associated with symptoms of certain psychiatric disorders.

Cerebral Tissue

The specialized brain matter that makes up the cerebrum, responsible for processing thoughts, decisions, sensations, and emotions.

PET Scan

Positron Emission Tomography, a medical imaging technique that produces detailed images of the body's functional processes by detecting radioactive substances injected into the bloodstream.

Paranoia

A mental condition characterized by delusions of persecution, unwarranted jealousy, or exaggerated self-importance, often elaborated into an organized system.