Computation of Cash Flows In preparing the cash flows from operations section of its statement of cash flows, Lester Corporation reported the following:

In its income statement for the year, Lester Corporation reported sales of $980,000, cost of goods sold of $579,000, depreciation expense of $36,000, interest expense of $37,000, and income tax expense of $140,000.

a. What amount of cash did Lester Corporation receive from customers for the year?

b. What amount did Lester Corporation pay to its suppliers for the year?

c. What amount of interest payments did Lester Corporation make to its bondholders for the year?

d. What amount of income tax did Lester Corporation pay for the year?

e. Prepare the cash flows from operations section of Lester Corporation’s statement of cash flows using the direct method.

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Net income Adjustments: Depreciation and amortization $188,000 $ 36,000 Increase in accounts receivable (44,000) Increase in inventory (17,000) Decrease in accounts payable to suppliers (24,000) Increase in interest payable 13,000 Decrease in income taxes payable (9,000) Cash provided by operations (45,000) $143,000