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:

Severely Mentally Ill

Refers to individuals who suffer from profound, often chronic, mental health issues that significantly impair their ability to function in daily life.

Hospitalization

The act or process of admitting someone to a hospital for medical care, treatment, or observation.

Drug Treatment

The use of pharmaceutical substances to manage or cure diseases and medical conditions, or to alleviate their symptoms.

Psychostimulant

A substance that elevates levels of nervous activity in the body, commonly used to improve mental alertness and reduce fatigue.