Cash Flows Provided by Operations (Direct Method)

The following information was taken from the comparative financial statements of Imperial Corporation for the years ended December 31, 2008 and 2009:

Use the direct method to compute cash flows provided by operating activities in 2009.
(Hint: You need to calculate cash paid for operating expenses.)

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Net income for 2009 Sales revenue Cost of goods sold Depreciation expense for 2009 Amortization of goodwill for 2009 Interest expense on short-term debt for 2009 Dividends declared and paid in 2009 Accounts receivable (net) Inventory Accounts payable $ 90,000 500,000 300,000 60,000 10,000 3,500 65,000 Dec. 31, 2009 Dec. 31, 2008 $30,000 $43,000 50,000 42,000 56,000 59,400