Preparing and interpreting the statement of cash flows using a columnar work sheet. The accounting records of Circuit City for Year 7 and Year 8 indicate the following changes in balance sheet accounts (amounts in millions):

c. Calculate the amount of cash collected from customers each year.

d. Calculate the amount of cash paid to suppliers of merchandise each year.

e. Calculate the amount of cash paid to suppliers of selling and administrative services during each year.

f. Comment on the pattern of cash flows from operating, investing, and financing activities each year.

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Cash Accounts Receivable Merchandise Inventories Prepayments Year 7 $159 Increase 208 Increase 69 Increase 8 Decrease Year 8 $ 86 Decrease 66 Increase 19 Increase 15 Decrease 291 Increase 116 Increase Property, Plant, and Equipment (at cost) 209 Increase Accumulated Depreciation .. 99 Increase Accounts Payable-Merchandise Suppliers Notes Payable to Banks (current liability) Other Current Liabilities Bonds Payable... Common Stock Retained Earnings 117 Increase 92 Decrease 71 Decrease 31 Increase 428 Increase 125 Increase 44 Increase 27 Increase 9 Decrease 19 Decrease 25 Increase 91 Increase