Azure
Corporation had the following 2011 income statement data:
Sales $205,500
Cost
of Goods Sold 120,000
Gross
profit 85,000
Operating
Expenses(includes depreciation $21,000) 50,000
Net
Income $35,000
The
following accounts increased during 2011 by the amounts shown: Accounts
Receivable, $17,000; Inventory, $11,000; Accounts Payable, $13,000; Mortgage
Payable, $40,000. Prepare the cash flows from operating activities section of
Azure’s 2011 statement of cash flows using the direct method.
|
Cash
flows from operating activities
|
|
|
|
Cash received from customers
|
|
|
|
($205,000 – $17,000)
|
|
$188,000
|
|
Cash paid
|
|
|
|
To suppliers
|
|
|
|
($120,000 + $11,000 – $13,000)
|
$118,000
|
|
|
For operating expenses
|
|
|
|
($50,000 – $21,000)
|
29,000
|
147,000
|
|
Net cash provided by operating activities
|
|
$ 41,000
|
