279 Statements of Financial Position and Cash Flows and the Annual Report A Statement of Cash Flows, Direct Method. Identify and compute the cash flow related to each item on the following income statement. Use the direct method. BE6-24. dy Balance Sheet Accounts Income Statement Accounts Beginning Ending Balance Balance a. Accounts Receivable $1,035 $1,123 Sales $35,678 400 Insurance Expense b. Prepaid Insurance 514 1,346 c. Inventory Cost of Goods Sold 5,461 72 34,762 d. Accounts Payable 4,312 5,125 e. Taxes Payable 3,009 2,400 Tax Expense 45,098 RSs and the AgnuReport 277 Statement of Cash Flows, Direct Method. A list of cash receipts and cash pments for Tucson Telecom- munications follows. Compute cash flows from operating activities under the direct reporting format, RE6-18. 46 Cash Receipts and Payments Amount Cash collected from customers $1,971,300 $860,740 Cash paid to suppliers 445,000 Cash receipts from borrowing 347,000 Cash paid to purchase equipment 244,300 Cash paid for taxes Cash receipts from issuing equity 236,900 145,600 Cash payments for property, plant, and equipment Cash payments for loans made 56,096 50,700 Cash payments on principal on debt 6,500 Cash payments for dividends 4,300 Cash paid for interest 480 Cash receipts from interest rec