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Exercise 12-6A (Algo) Direct versus indirect method of determining cash flows from operating activities LO 12-1, 12-2 Expert Electronics, Incorporated (EEI) recognized $5,600 of sales
Exercise 12-6A (Algo) Direct versus indirect method of determining cash flows from operating activities LO 12-1, 12-2 Expert Electronics, Incorporated (EEI) recognized $5,600 of sales revenue on account and collected $3,300 of cash from accounts receivable. Further, EEl recognized $2,100 of operating expenses on account and paid $1,300 cash as partial settlement of accounts payable. Required Based on this information alone: a. Prepare the operating activities section of the statement of cash flows under the direct method. Note: Amounts to be deducted should be indicated with a minus sign. b. Prepare the operating activities section of the statement of cash flows under the indirect method. Note: Amounts to be deducted should be indicated with a minus sign
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