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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
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 Beginning Balances $ 580 Ending Balances $ 560 990 420 770 Accounts Receivable Inventory Accounts Payable Prepaid Rent Prepaid Insurance Salaries and Wages Payable Utilities Payable 460 20 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.) DIRECT PRODUCTS COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Cash Receipts from Customers Cash Payments to Suppliers Cash Payments for Insurance Cash Payments for Interest Cash Payments for Utilities Cash Payments for Salaries and Wages Cash Payments for Rent Net Cash Provided by Operating Activities
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