Calculate cash from operating activities using the direct method. (LO 1, 4) The following information applies to Electronics Plus Inc.:

1. Accounts receivable started the year with a balance of \(\$ 1,500\) and ended the year with a balance of \(\$ 500\).
2. The beginning balance in accounts payable (to vendors) was \(\$ 1,650\), and the ending balance was \(\$ 550\). Inventory at the end of the year was the same as it was at the beginning of the year (i.e., there was no change in inventory).
3. The company started the year with \(\$ 3,000\) of prepaid rent and ended the year with \(\$ 1,600\) of prepaid rent.
Determine the following cash flows.

a. Cash collected from customers for sales during the year

b. Cash paid to vendors for inventory during the year

c. Cash paid for rent during the year

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Income Statement for the Year Ended June 30, 2010 Sales Cost of goods sold Gross margin Rent expense Net income $ 35,000 (20,600) 14,400 (1,400) $13,000