The Cash Flows from Operating Activities Are Reported by the Direct

question 164

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 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:

Extrinsic Motivation

A type of motivation that is driven by external rewards, such as money, fame, grades, and praise, rather than by the intrinsic pleasure or satisfaction derived from the activity itself.

Bulimia

is an eating disorder characterized by episodes of binge eating followed by purging, either through vomiting, fasting, or excessive exercise, to prevent weight gain.

Developing

The process of growth or progress, often referring to countries with less advanced economies or to the unfolding of individual potential.

Lifetime Risk

The probability that an individual, over the course of their lifetime, will develop a specific disease or condition.