The balance sheet and income statement for Debbie Dress Shops are presented along with some additional information about the accounts. You are to answer the questions that follow concerning cash flows for the period.

a. All accounts receivable and accounts payable are related to trade merchandise. Accounts payable are recorded net and always are paid to take all the discounts allowed. The allowance for doubtful accounts at the end of 2008 was the same as at the end of 2007; no receivables were charged against the allowance during 2008.

b. The proceeds from the note payable were used to finance a new store building. Capital stock was sold to provide additional working capital.
Required:
1. Calculate cash collected during 2008 from accounts receivable.
2. Calculate cash payments during 2008 on accounts payable to suppliers.
3. Calculate cash provided from operations for 2008.
4. Calculate cash inflows during 2008 from financing activities.
5. Calculate cash outflows from investing activities during 2008.

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Balance Sheet 2008 December 31 2007 Assets Current assets Cash Accounts receivable-net Merchandise inventory Prepaid expenses Total current assets Long-term investments Land, building, and fixtures Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 300,000 840,000 $ 200,000 580,000 660,000 420,000 100,000 50,000 1,900,000 1,250,000 80,000 600,000 (110,000) (50,000) 1,020,000 $3,000,000 550,000 $1,800,000 1,130,000 Accrued expenses $ 530,000 140,000 $ 440,000 130,000 Dividends payable Total current liabilities Note payable-due year 2011 Stockholders' equity Common stock 70,000 740,000 570,000 500,000 1,200,000 900,000 Retained earnings 560,000 330,000 Total stockholders' equity 1,760,000 1,230,000 Total liabilities and stockholders' equity $3,000,000 $1,800,000 (continued)