Cash Flows from Operations (Direct Method)

Saturday Shoppers, Inc., shows the following information in its accounting records at year-end:

Selected balance sheet data are as follows:

Required:
1. Using the direct method, compute the net cash flows provided by (used in) operating activities for Saturday Shoppers, Inc.
2. Interpretive Question: Explain the main differences between the net amount of cash flows from operations and net income (loss).

Transcribed Image Text:

Sales revenue Interest revenue $740,000 24,000 Cost of goods sold 380,000 Wages expense 190,000 Depreciation expense 42,000 Other (cash) operating expenses 68,000 Dividends declared 30,000