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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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