Refer to the information for Dunn Products Inc. in Problem 11-45B. In problem The income statement for

Question:

Refer to the information for Dunn Products Inc. in Problem 11-45B.
In problem The income statement for Dunn Products Inc. is presented below.

The following balance sheet changes occurred during the year:
€¢ Accounts receivable decreased by $85,150
€¢ Inventory decreased by $138,620
€¢ Prepaid expenses increased by $112,400
€¢ Accounts payable decreased by $67,225
€¢ Salaries payable increased by $18,300
Required:
Prepare the cash flows from operating activities section of the statement of cash flows, using the direct method.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...