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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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