The following information is available for The Book Wermz for November, 2004. All numbers are dollar amounts.

Question:

Cash balance, November 30 ............$12,307.99

Cash balance, October 31 ............. 15,389.55

Cash paid for debt repayment ............ 1,122.77

Cash paid for dividends ............... 1,500.00

Cash paid for equipment .............. 2,000.00

Cash paid for interest ................ 932.03

Cash paid for merchandise .............. 33,243.92

Cash paid for rent ................ 1,738.15

Cash paid for supplies ............... 2,576.93

Cash paid for taxes ................. 897.45

Cash paid for wages ................ 4,073.79

Cash received from customers ............ 45,003.48

Decrease in accounts receivable ............ 125.00

Depreciation expense ................ 817.20

Increase in accounts payable ............. 6,131.77

Increase in inventory ................ 8,438.37

Increase in supplies ............... 165.40

Increase in wages payable ............. 623.56

Net income ................... 2,447.45

Required

Use the data provided to prepare a statement of cash flows for The Book Wermz for November using a spreadsheet. Prepare the statement using both the direct and indirect formats. Show cash outflows as negative amounts. Use the appropriate formatting buttons to include commas and dollar signs as needed. Use the Merge Cells and Bold buttons to position and format titles. The captions for the direct format statement should appear in column A and the amounts should appear in column B. The captions for the indirect format should appear in column D and the amounts should appear in column E. Use functions to sum subtotals and totals, such as = SUM(B5:B8), so that changes to any of the amounts being totaled will be automatically recalculated. Suppose net income had been $2,600 and the amount of cash received from customers had been $45,156.03. What would operating cash flow have been?

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