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Please thoroughly explain how you got the answers you did. The income statement and selected balance sheet information for Direct Products Company for the year
Please thoroughly explain how you got the answers you did.
The income statement and selected balance sheet information for Direct Products Company for the year ended December 31 are presented below. $48,600 Income Statement Sales Revenue Expenses : Cost of Goods Sold Depreciation Expense Salaries and Wages Expense Rent Expense Insurance Expense Interest Expense Utilities Expense Net Income 21,000 2,000 9,000 4,500 1,900 1,800 1,400 $ 7,000 Selected Balance Sheet Accounts Accounts Receivable Inventory Accounts Payable Prepaid Rent Prepaid Insurance Salaries and Wages Payable Utilities Payable Ending Balances $ 560 990 420 25 25 100 20 Beginning Balances $ 580 770 460 20 28 60 15 Required: Prepare the cash flows from operating activities section of the statement of cash flows using the direct method. (Amounts to be deducted should be indicated with a minus sign.) Answer is not complete. DIRECT PRODUCTS COMPANY Statement of Cash Flows For the Year Ended December 31 $ 48,620 Cash Flows from Operating Activities: Cash Receipts from Customers Cash Payments to Suppliers Cash Payments for Salaries and Wages Cash Payments for Rent Cash Payments for Insurance Cash Payments for Interest Cash Payments for Utilities |(21,220) (8,960) 4,525 X $ 22,965Step by Step Solution
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