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The income statement and selected balance sheet information for Direct Products Company for the year...

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Accounting

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The income statement and selected balance sheet information for Direct Products Company for the year ended December 31, 2011, follow. Income Statement $50,700 Sales revenue Expenses Cost of goods sold 20,800 Depreciation expense 950 Salaries expense 8,300 4,500 Rent expense 800 Insurance expense 720 Interest expense Utilities expense 320 Loss on sale of land 920 $9,390 Net income Selected Balance Sheet Accounts 2011 2010 $548 $596 Accounts receivable Merchandise inventory 002 Accounts payable 434 470 Salaries payable 112 50 Utilities payable Prepaid rent 20 Prepaid insurance 42 Required Prepare the cash flows from operating activities section of the 2011 statement of cash flows using the direct method. (Amounts to be deducted should be indicated with a minus sign. Omit the sign in your response. DIRECT PRODUCTS COMPANY Statement of Cash Flows For the Year Ended December 31, 2011 Cash flows from operating activities Cash receipts from customers 50,748 Cash payments to suppliers 21,074 Cash payments for rent 4,489 Cash payments for utilities 1,294 Cash payments for insurance 1,831 Cash payments for salaries 8,238 Cash payments for interest 1,720

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