Question
Melissa, Inc. reported the following income statement, prepared on the accrual basis: Sales $ 6,000 Cost of goods sold (4,700) Gross profit $ 1,300 Operating
Melissa, Inc. reported the following income statement, prepared on the accrual basis:
Sales | $ 6,000 | |||
Cost of goods sold | (4,700) | |||
Gross profit | $ 1,300 | |||
Operating expenses: | ||||
Depreciation expense | $190 | |||
Other operating expenses | 650 | (840) | ||
Income before taxes | $ 460 | |||
Income tax expense | (210) | |||
Net income | $ 250 | |||
Changes during the year in selected accounts: | ||||
Accounts receivable | $100 decrease | |||
Inventories | 200 decrease | |||
Accounts payable (on purchases) | 150 increase | |||
Salaries payable | 60 decrease | |||
Prepaid expenses | 30 increase |
Required: For Melissa, Inc., compute the cash flow pertaining to:
Cash collections from customers. |
Cash paid for operating expenses.
Cash paid for suppliers.
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