Calculating Operating Cash Flows (Direct Method) Calculate the cash flow for each of the following cases....

Calculating Operating Cash Flows (Direct Method)

Calculate the cash flow for each of the following cases.

a. Cash paid for advertising:

Advertising expense	$62,000
Prepaid advertising, beginning of year	11,000
Prepaid advertising, end of year	15,000
Cash paid for advertising	$Answer

b. Cash paid for income taxes:

Income tax expense	$29,000
Income tax payable, beginning of year	7,100
Income tax payable, end of year	4,900
Cash paid for income taxes	$Answer

c. Cash paid for merchandise purchased:

Cost of goods sold	$180,000
Inventory, beginning of year	30,000
Inventory, end of year	25,000
Accounts payable, beginning of year	10,000
Accounts payable, end of year	12,000
Cash paid for merchandise purchased:	$Answer

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ekkarill92 answered 1 year ago

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