-Use the Information Provided Above to Calculate the Net Cash

question 36

Essay

$\begin{array}{lrlr}\text { Sales revenue } & \$ 909,272 & \text { Amortization expense } & \$ 3,206 \\\text { Cost of goods sold } & 445,563 & \text { Selling. general and administrative } & 91,316\\&&\text { expenses }\\\text { Interest expense } & 12,402 & \text { Income tax expense } & 143,126 \\\text { Accounts receivable 12/31/06 } & 65,305 & \text { Accounts receivable } 12 / 31 / 07 & 67,810 \\\text { Accounts payable 12/31/06 } & 16,540 & \text { Accounts payable } 12 / 31 / 07 & 17,261\\\text { Prepaid expenses 12/31/06 } & 4,107 & \text { Prepaid expenses 12/31/07 } & 3,875 \\\text { Inventory } 12 / 31 / 06 & 7,852 & \text { Inventory } 12 / 31 / 07 & 6,491\end{array}$
-Use the information provided above to calculate the net cash flow from operating activities in 2007 using the direct method.

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Definitions:

Dissolution

The process of dissolving a company or ending a legal entity's existence.

Partnership Terminated

The disbanding of the partnership agreement between the involved parties, leading to the cessation of the partnership business.

Dissolution

The closing down or termination of a legal entity or agreement, such as a corporation or partnership.

Partnership's Name

The official legal name under which a partnership is registered and operates its business.