Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The cash flows from (used for) operating activities are reported by the direct method on the statement of cash flows. Determine the following: a.
The cash flows from (used for) operating activities are reported by the direct method on the statement of cash flows. Determine the following: a. If sales for the current year were $753,500 and accounts receivable decreased by $48,400 during the year, what was the amount of cash received from customers? b. If income tax expense for the current year was $50,600 and income tax payable decreased by $5,500 during the year, what was the amount of cash paid for income taxes? c. Briefly explain why the cash received from customers in part (a) is different from sales. Because the customers paid than the amount of sales for the period, cash received from customers sales made on account by $48,400 during the current year.
Step by Step Solution
★★★★★
3.43 Rating (162 Votes )
There are 3 Steps involved in it
Step: 1
A Sales Less Incr ease in Acountvecejuoble A sales 753500 Add Decrease in Accountrec...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started