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Expert Electronics, Incorporated (EEI) recognized $4,400 of sales revenue on account and collected $2,500 of cash from accounts receivable. Further, EEI recognized $1,300 of operating
Expert Electronics, Incorporated (EEI) recognized $4,400 of sales revenue on account and collected $2,500 of cash from accounts receivable. Further, EEI recognized $1,300 of operating expenses on account and paid $900 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. 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. Note: 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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