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Power Corporation owns 75 percent of Surge Companys stock; no intercompany purchases or sales were...

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Accounting

Power Corporation owns 75 percent of Surge Companys stock; no intercompany purchases or sales were made in 20X4. For the year, Power and Surge reported sales of $390,000 and $220,000 and cost of goods sold of $160,000 and $104,500, respectively. Powers inventory increased by $33,000, but Surges decreased by $14,000. Powers accounts receivable increased by $19,000 and its accounts payable decreased by $16,000 during 20X4. Surges accounts receivable decreased by $9,000 and its accounts payable increased by $5,000.

Required: Assuming there were no other cash flows from operations, using the direct method of computing cash flows from operating activities, compute the following:

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Answer is complete but not entirely correct. a. Cash received from customers b. Cash payments to suppliers c. | Cash flows from operating activities $ 572,000 $ 304,500 $ 267,500

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