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Optics Company Uses the Direct Method for Preparing Its Statement

question 128

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Optics Company uses the direct method for preparing its statement of cash flow. Optics reports the following information regarding 2019: From the income statement:
Sales Revenues, $266,000
Cost of Goods Sold, $210,000
Operating Expenses, $32,000
Net Income $24,000
From the balance sheet:
 Beginning Balance  Ending Balance  Accounts Receivable $14,800$18,200 Merchandise Inventory 23,50017,900 Accounts Payable 660013,500 Accrued Liabilities 43002000\begin{array} { | l | r | r | } \hline & \text { Beginning Balance } & \text { Ending Balance } \\\hline \text { Accounts Receivable } & \$ 14,800 & \$ 18,200 \\\hline \text { Merchandise Inventory } & 23,500 & 17,900 \\\hline \text { Accounts Payable } & 6600 & 13,500 \\\hline \text { Accrued Liabilities } & 4300 & 2000 \\\hline\end{array} Assume that there were no sales of long-term assets, no interest revenue, and no expenses other than the expenses shown above. Also, assume that Accounts Payable are for purchases of merchandise inventory only. Accrued liabilities relate to operating expenses. What amount will be shown for the net cash provided by operating activities?


Definitions:

Benefits

Forms of compensation provided to employees in addition to salary, such as health insurance, retirement plans, and paid time off.

Back Up

The process of copying and storing computer data so it may be used to restore the original after a data loss event.

Computer Work

Tasks or activities performed using a computer, including programming, data processing, and internet research.

Emergencies

Urgent situations requiring immediate action to prevent serious outcomes or to mitigate disasters.

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