[The following information applies to the questions displayed below.] Suppose your company sells services for $505 cash this month. Your company also pays $370 in salaries and wages, which includes $195 that was payable at the end of the previous month and $175 for salaries and wages of this month.

1.

value: 7.69 points

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Required: 1. Prepare the journal entries to record these transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

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2.

value: 7.69 points

Required information

2. Calculate the amount that should be reported as net cash flow from operating activities. 3. Calculate the amount that should be reported as net income. 4. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2). (Amounts to be deducted should be indicated with a minus sign.)