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:

Culturally Fair

Describing tests, tasks, or procedures that are designed to be unbiased and equitable across different cultures or demographic groups.

Reliable

Consistency in measurement over time; the degree to which an assessment tool produces stable and consistent results.

IQ Scores

Numerical measures of an individual's intelligence level, typically based on standardized tests.

David Wechsler

A psychologist who developed several widely used intelligence tests, including the Wechsler Adult Intelligence Scale (WAIS) and the Wechsler Intelligence Scale for Children (WISC).