Operating Cash Flows, Direct Method The income statement for Piura Merchandising Corporation is as follows: Piura Merchandising Corporation Income Statement At December 31, 20X2 Revenues $1,500,000.00 Cost of goods sold Beginning inventory Purchases $400,000.00 800,000.00 (200,000.00 Ending inventory Depreciation expense Amortization of patent Wages expense Insurance expense Income before taxes Income taxes (all current) Net income Other information is as follows: (1,000,000.00) (100,000.00) (20,000.00) (80,000.00) (40,000.00) $260,000.00 (104,000.00) $156,000.00 Check My Work Previous Next eBook TECUME Other information is as follows: A. Accounts payable decreased by $20,000 during the year. B. Accounts receivable increased by $20,000. C. All wages were paid at the beginning of the year; at the end of the year, wages payable had a balance of $12,000. D. Prepaid insurance increased by $24,000 during the year. Required: Prepare a schedule of operating cash flows using the direct method. (Note: Begin by entering the applicable income statement amounts. In the Adjustments column, if an account has more than one adjustment, enter the total effect of all adjustments in the applicable cell. Use a minus sign to indicate a negative adjustment or a negative cash outflow.) Piura Merchandising Corporation Cash Flows from Operating Activities, Direct Method For the Year Ended December 31, 20X1 Income Statement Adjustments Cash Flows Cash flows from operating activities: Revenues Cost of goods sold Depreciation expense Amortization of patent Wages expense Insurance expense Income taxes Check My Work Previous Next > $12,000. D. Prepaid insurance increased by $24,000 during the year. Required: Prepare a schedule of operating cash flows using the direct method. (Note: Begin by entering the applicable income statement amounts. In the Adjustments column, if an account has more than one adjustment, enter the total effect of all adjustments in the applicable cell. Use a minus sign to indicate a negative adjustment or a negative cash outfiow.) Piura Merchandising Corporation Cash Flows from Operating Activities, Direct Method For the Year Ended December 31, 20X1 Income Statement Adjustments Cash Flows Cash flows from operating activities: Revenues Cost of goods sold Depreciation expense Amortization of patent Wages expense Insurance expense Income taxes Net Income Net cash from operating activities Check My Work Previous Next All work saved Save and Exit Submit Assignment for Grading