DIRECT DETERMINATION OF CASH FLOWS FROM OPERATIONS. Casey Company engaged in the following transactions:

a) Made credit sales of $600,000. The cost of the merchandise sold was $410,000.

“

b) Collected accounts receivable in the amount of $580,000.

c) Purchased goods on credit in the amount of $425,000.

d) Paid accounts payable in the amount of $392,000.

REQUIRED:

Determine the effect of each transaction on cash inflows or cash outflows.