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B C D E F G H 1 2 The following accounts and corresponding balances were drawn from Marinelli Company's Year 2 and Year

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B C D E F G H 1 2 The following accounts and corresponding balances were drawn from Marinelli Company's Year 2 and Year 1 year-end balance sheets: 3 4 Account Title 5 Accounts receivable 6 Interest receivable 7 Other operating expenses payable 8 Salaries payable Year 2 Year 1 $35,200 $ 31,600 4,200 4,800 21,000 18,500 6,500 7,200 9 10 The Year 2 income statement is shown next: 11 12 Income Statement 13 Sales 14 Salaries expense 15 Other operating expenses 16 Operating income 17 Nonoperating items: Interest revenue 18 Net income 19 $530,000 (214,000) (175,000) 141,000 16,500 $157,500 20 Required 21 a. Use the direct method to compute the amount of cash inflows from operating activities. 22 b. Use the direct method to compute the amount of cash outflows from operating activities. 23 24 a. Net cash inflows from operating activities $543,500 25 b. Net cash outflows from operating activities $387,200 26 27 28 20 K

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