Parmesan Company Uses the Direct Method for Its Statement of Cash

question 42

Essay

Parmesan Company uses the direct method for its statement of cash flow. It reports the following information regarding the year 2013:
From the income statement:
Assume that there were no sales of long-term assets, no interest revenue, and no expenses other than the expenses shown above. Please also assume that accounts payable are for purchases of inventory only.
Please prepare the operating activities section of the statement of cash flows using the format below:

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Definitions:

Magnuson-Moss Act

A federal law enacted to protect consumers from deceptive warranty practices, improving the enforceability of warranties on consumer products.

Injunctive Relief

A court order requiring a party to do or to refrain from doing specific acts.

Equal Credit Opportunity

A law that prohibits lenders from discriminating against applicants based on race, color, religion, national origin, sex, marital status, age, or because all or part of an applicant's income derives from any public assistance program.

Credit Discrimination

The practice of denying or limiting financial services to individuals based on race, color, religion, national origin, sex, marital status, age, or because they get public assistance.