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Aggressive Corporation approaches Matt Taylor, a loan officer for Oklahoma State Bank, seeking to increase the companys borrowings with the bank from $100,000 to $200,000. Matt has an uneasy feeling as he examines the loan application from Aggressive Corporation, which just completed its first year of operations. The application included the following financial statements.

AGGRESSIVE CORPORATION
Income Statement
For the Year Ended December 31, 2024
Net sales		$275,000
Expenses:
Cost of goods sold	$150,000
Operating expenses	50,000
Depreciation expense	10,000
Total expenses		210,000
Net income		$ 65,000

AGGRESSIVE CORPORATION
Balance Sheets
December 31, 2024
	2024	2023
Assets
Current assets:
Cash	$150,000	$0
Accounts receivable	0	0
Inventory	0	0
Long-term assets:
Equipment	160,000	0
Accumulated depreciation	(10,000)	0
Total assets	$300,000	$0
Liabilities and Stockholders Equity
Current liabilities:
Accounts payable	$ 25,000	$0
Interest payable	10,000	0
Long-term liabilities:
Note payable	100,000	0
Stockholders equity:
Common stock	100,000	0
Retained earnings	65,000	0
Total liabilities and stockholders equity	$300,000	$0

Matt notices that the company has no ending accounts receivable and no ending inventory, which seems suspicious. Matt is also wondering why a company with $150,000 in cash is seeking an additional $100,000 in borrowing.

Seeing Matts hesitation, Larry Bling, the CEO of Aggressive Corporation, closes the conference room door. He shares with Matt the following additional information:

The ending accounts receivable balance is actually $60,000, but because those accounts are expected to be collected very soon, I assumed a balance of $0 and counted those receivables as cash collected.

The ending inventory balance is actually $40,000, but I believe that inventory can easily be sold for $75,000 in the near future. So, I included sales revenue of $75,000 (and cost of goods of $40,000) in the income statement and cash collected of $75,000 (and no inventory) in the balance sheet.

Plus, Larry tells Matt that hell be looking for a new CFO in another year to run Aggressive Corporation, along with his other businesses, and Matt is just the kind of guy he is looking for. Larry mentions that as CFO, Matt would receive a significant salary. Matt is flattered and says he will look over the loan application and get back to Larry concerning the additional $100,000 loan by the end of the week.

Required:

I got both questions wrong on my first attempt in the pictures below. Can you help me solve for 1 and 2.

1. Calculate operating cash flows using the financial statements provided by Larry. (List cash outflows and any decrease in cash as negative amounts.)

2. Calculate operating cash flows without the two assumptions made by Larry. (List cash outflows and any decrease in cash as negative amounts.)

Calculate operating cash flows using the financial statements provided by Larry. (List cash outflows and any de as negative amounts.) Calculate operating cash flows without the two assumptions made by Larry. (List cash outflows and any decreas negative amounts.)

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