Balances of the current asset and current liability accounts at the end and beginning of the year are as follows:


End Beginning
Cash $ 62,000 $73,000
Accounts receivable (net) 75,000 60,000
Inventories 54,000 47,000
Accounts payable
(merchandise creditors) 43,000 37,000
Salaries payable 2,800 3,800
Sales (on account) 210,000
Cost of merchandise sold 70,000
Operating expenses other than depreciation 67,000


Use the direct method to prepare the cash flows from operating activities section of a statement of cash flows.

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Again, if you'll show your work we will help you. Thanks.

Cash flows from operation activities :

Cash received from customers $195,000

Deduct:cash payment for merchandise 68,000

Cash for operation expenses 67,000

$135,00

Net cash flow from operation activities $ 60,000

I'm coming up with a different number of the merchandise. Can you show how you got $68,000?

You need to show the change in Wages Payable.