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Calculating Operating Cash Flows (Direct Method) Calculate the cash flow for each of the following cases. a. Cash paid for advertising: Advertising expense $62,000 Prepaid

Calculating Operating Cash Flows (Direct Method)

Calculate the cash flow for each of the following cases.

a. Cash paid for advertising:

Advertising expense $62,000
Prepaid advertising, beginning of year 11,000
Prepaid advertising, end of year 15,000
Cash paid for advertising $Answer

b. Cash paid for income taxes:

Income tax expense $29,000
Income tax payable, beginning of year 7,100
Income tax payable, end of year 4,900
Cash paid for income taxes $Answer

c. Cash paid for merchandise purchased:

Cost of goods sold $180,000
Inventory, beginning of year 30,000
Inventory, end of year 25,000
Accounts payable, beginning of year 10,000
Accounts payable, end of year 12,000
Cash paid for merchandise purchased: $Answer

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