Computation of Operating Cash Flows
the Financial Statements of Custom

question 115

Essay

Computation of operating cash flows
The financial statements of Custom Corporation provide the following information for the current year:
$\begin{array}{lrr}&\begin{array}{c}\text { End of } \\\text { Year }\end{array} & \begin{array}{c}\text { Beginning } \\\text { of Year }\end{array} \\\text { Accounts receivable } & \$ 201,000 & \$ 221,000 \\\text { Inventory } & \$ 249,000 & \$ 233,000 \\\text { Short-term prepayments } & \$ 12,000 & \$ 9,500 \\\text { Accounts payable (for merchandise) } & \$ 177,000 & \$ 170,000 \\\text { Accrued operating expenses payable } & \$ 25,500 & \$ 33,200 \\\text { Accrued income taxes payable } & \$ 12,600 & \$ 15,500 \\\text { Net sales } & \$ 801,000 & \\\text { Cost of goods sold } & \$ 465,000 & \\\text { Operating expenses (including depreciation of } \$ 40,000) & \$ 300,000 & \\\text { Income taxes expense } & \$ 39,000 &\end{array}$
Using this information, compute for the current year:

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Definitions:

Social

Relating to society or its organization, or the interactions and relationships of individuals within a community.

Chronic Stress

Persistent stress that continues over an extended period, potentially leading to health issues and diminished quality of life.

Emotional Jolt

A sudden intense emotional reaction or shock.

Grinding

The repetitive action of performing a task or operation to improve skill, produce something, or achieve a goal, often used in the context of video gaming or work.