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Cash Flows from (Used for) Operating ActivitiesDirect Method

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 $606,100 and accounts receivable decreased by $44,900 during the year, what was the amount of cash received from customers?

$fill in the blank 1

b. If income tax expense for the current year was $51,100 and income tax payable decreased by $5,600 during the year, what was the amount of cash paid for income taxes?

$fill in the blank 2

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 $44,900 during the current year.

Cash Flows from (Used for) Operating Activities-Direct Method The cash flows from (used for) operating activities are reported by the direct method on the statement of cash flows. Determine the following: all sales for the current year were $605,100 and accounts receivable decreased by $44,900 during the year, what was the amount of cash received from customers? b. tf income tax expense for the current year was $51.100 and income tax payable decreased by $5,000 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 $44,900 during the current year

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