Question 4:

XYZ Co. had the following information in 2020:

Sales 150000

COGS 80000

Operating expenses (excluding depreciation) 32000

Interest expense 8000

Taxes 3000

Increase in Accounts receivable 7000

Decrease in inventory 4000

Increase in Accounts payable 5000

Decrease in other payables 3500

Increase in interest payable 2000

Decrease in tax payable 1000

Prepare operating cash flows using direct

method.