Computation of Operating Cash Flows
the Financial Statements of Custom

question 161

Essay

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

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