Computation of Operating Cash Flows
the Financial Statements of Custom

question 135

Essay

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

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