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Expert Electronics, Inc. (EEI) recognized $9,200 of sales revenue on account and collected $5,700 of cash from accounts receivable. Further, EEl recognized $4,500 of operating
Expert Electronics, Inc. (EEI) recognized $9,200 of sales revenue on account and collected $5,700 of cash from accounts receivable. Further, EEl recognized $4,500 of operating expenses on account and paid $2,500 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: Net cash flow from operating activities $ 0 b. Prepare the operating activities section of the statement of cash flows under the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Operating Activities - Indirect Method Cash flows from operating activities: Net cash flow from operating activities 0
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