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Direct Method Assuming that a direct method is used in the Operating Activities section, fill in the blank for each of the following situations. Show
Direct Method
Assuming that a direct method is used in the Operating Activities section, fill in the blank for each of the following situations. Show inflows as a positive number and outflows as a negative number.
| Balance Sheet | Beginning | Ending | Income Statement | Cash Inflow (Outflow) |
| 1. Accounts receivable | $2,076 | $5,088 | Sales on account, $15,265 | $ |
| 2. Prepaid insurance | $4,151 | $2,958 | Insurance expense, $7,032 | $ |
| 3. Income taxes payable | $5,934 | $8,896 | Income tax expense, $20,293 | $ |
| 4. Wages payable | $4,958 | $2,855 | Wages expense, $25,903 | $ |
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