The Cash Flows from Operating Activities Are Reported by the Direct

question 14

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:

Services

Constitutes intangible economic activities provided by businesses or individuals that result in customer satisfaction without producing a physical product.

Stereotype Threat

The fear that a stereotype might be true of oneself or that one will be judged by that stereotype.