b. What was the cash flow from operating activities? (Use the direct method)

Reconciling Net Income and Cash Flow from Operations Using FSET For fiscal year 2016, Riffe Enterprises had the following summary information available concerning its operating activities. The company had no investing or financing activities this year. 1. Sales of services to customers on credit $384,600 2. Sales of services to customers for cash 23,100 3. Employee compensation earned 263,350 4. Cash payment in advance to landlord for offices 74,550 5. Cash paid to employees for compensation 260,800 6. Rental expense for offices used over the year 7. Collections from customers on accounts receivable. 362,050 8. Operating expenses (all paid in cash) 61,400 9. Depreciation expense 11,500 58,950 + 0 a. Enter the items above into the Financial Statement Effects Template. Under noncash assets, use three separate columns for accounts receivable and prepaid rent and the accumulated depreciation contra- asset. Calculate the totals for each column. Note: Use negative signs with answers, when appropriate. Accounts Accum. Earned Transaction Cash Asset Receivable + Prepaid Rent Depreciation Liabilities + Contr. Capital + Capital Revenue Expenses Net income 1. Sales of services to customers on credit 0 384,600 0 0 0 0 384,600 384,600 0 384,600 2. Sales of services to customers for cash 23,100 0 0 0 0 23,100 23,100 0 23,100 3. Employee compensation earned 0 0 0 0 263,350 0 (263,350) 0 263,350 (263,350) 4. Cash payment in advance to landlord for offices (74,550) 0 74,550 0 0 0 0 0 0 0 5. Cash paid to employees for compensation (260,800) 0 0 (260,800) 0 0 0 0 6. Rental expense for offices used over the year 0 0 (58,950) 0 0 0 (58,950) 0 58,950 (58,950) 7. Collections from customers on accounts receivable. 362,050 (362,050) 0 0 0 0 0 0 8. Operating expenses (all paid in cash) (61,400) 0 0 0 0 0 (61,400) 0 61,400 (61,400) 9. Depreciation expense 0 0 0 11,500 0 0 (11,500) 11,500 (11,500) Totals (11,600) 22,550 15,600 11,500 2,550 12,500 407,700 395,200 12,500 0 0 0 0 0 0