Cash flows from operating activitiesdirect method OBJ. 3 The cash flows from operating activities are reported by

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Cash flows from operating activities—direct method OBJ. 3 The cash flows from operating activities are reported by the direct method on the statement of cash flows. Determine the following:

a. If sales for the current year were $753,500 and accounts receivable decreased by

$48,400 during the year, what was the amount of cash received from customers?

b. If income tax expense for the current year was $50,600 and income tax payable decreased by $5,500 during the year, what was the amount of cash payments for income taxes?

c. Briefly explain why the cash received from customers in

(a) is different than sales.

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Financial And Managerial Accounting

ISBN: 9781305267831,9781305267848

13th Edition

Authors: Carl S. Warren , James M. Reeve , Jonathan Duchac

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