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Expert Electronics, Inc. (EEI) recognized $5,600 of sales revenue on account and collected $3,300 of cash from accounts receivable. Further, EEI recognized $2,100 of operating
Expert Electronics, Inc. (EEI) recognized $5,600 of sales revenue on account and collected $3,300 of cash from accounts receivable. Further, EEI 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. (Amounts to be deducted should be indicated with a minus sign.) Operating Activities - Direct Method Cash flows from operating activities: Accounts payable Cash payments for inventory Cash payments for operating expenses Cash payments for salaries $ 3,300 $ 3,300 Based on this information alone: settlement of accounts payable a. Prepare the operating activities section of the statement of cash flows under the direct method (Amounts to be deducted should be indicated with a minus sign.) Operating Activities-Direct Method Cash flows from operating activities Cash payments for operating expenses $ 3,300 Net cash flow from operating activities $ 3,300
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