Exercise 16-16B Direct: Computing cash flows LO P5 Case X1 Case Y: Compute cash received from customers: Sales Accounts receivable, Beginning balance Accounts receivable, Ending balance Compute cash paid for rent Rent expense $640,000 62,000 85,560 $127,100 Rent payable, Beginning balance 13,250 Rent payable, Ending balance 11,660 Case 2: Compute cash paid for inventory Cost of goods sold $704,000 Inventory, Beginning balance 218,240 Accounts payable, Beginning balance. 91,661 Inventory, Ending balance Accounts payable, Ending balance 178,957 113,660 For each of the above three separate cases, use the information provided about the current-year operations of Sahim Company to compute the required cash flow information. Assume all purchases and sales of inventory are on credit Case X: Cash received from customers Case Y: Case Z Cash paid for rent Cash paid for inventory The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 11 Sales $2,091,000 Cost of goods sold 1,024,590 Gross profit 1,066,410 Operating expenses Salaries expense $286,467 Depreciation expense 50,184 Rent expense 56,457 Amortization expenses-Patents 6,273 Utilities expense 23,001 Gain on sale of equipment Net income 422,382 644,028 8,364 $ 652,392 Accounts receivable Inventory $23,050 increase 18,125 increase Accounts payable Salaries payable $13,175 decrease 2,350 decrease Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (partial) Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities