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    asmahan1's Avatar
    asmahan1 Posts: 3, Reputation: 1
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    #1

    Jun 5, 2011, 08:01 AM
    Balances of the current asset and current liability accounts at the end and beginning
    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.
    Just Looking's Avatar
    Just Looking Posts: 1,610, Reputation: 480
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    #2

    Jun 5, 2011, 09:00 AM

    Announcement:

    Again, if you'll show your work we will help you. Thanks.
    asmahan1's Avatar
    asmahan1 Posts: 3, Reputation: 1
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    #3

    Jun 5, 2011, 03:48 PM
    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
    Just Looking's Avatar
    Just Looking Posts: 1,610, Reputation: 480
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    #4

    Jun 5, 2011, 04:55 PM

    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.
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