Cash Flows from Operating Activities - Direct Method The cash flows from operating activities are reported by the direct method on the statement of cash flow. Determine the following: a. If sales for the current year were $753,500 and accounts receivable decreased by $18.400 during the year, what was the amount of cash received from customers b. If income tax expense for the current year was $50,600 and income tax payable decreased by $5,500 during the year what was the amount of cash payments for income taxes? c. Brietly explain why the cash received from customers in part() is different from sales.- Because the customers paid than the amount of sales for the period, cash received from customers the current year. sales made on account by $48,400 during Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Income tax payable 13,780) 17.080) 1,260 (2,660) MINIUM a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the direct method. Use the mission to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments Booker T Industries Inc. Cash Flows from Operating Activities Section For the year ended on June 30 Cash flows from operating activities: Net cash flow from operating activities b. What does the direct method show about a company's cash flows from operating s ites that is not shown using the indirect method? With the the cash received less the cash payments is the net cash flow from operating sites v ol cash receipts and synets are reported in the Cash Flows from Operating Activities section adost accrual basis net income for revenues and expenses that do not wolve the receptor payment of cash to arrive at cashHowsomeperating activities