E9-13A. Calculate cash from operating activities using the direct method. (LO I, 4)
During the fiscal year ended September 30,2006, Napster Company engaged in the following transactions. Using the relevant transactions, prepare the cash from operating activities section of the statement of cash flows using the direct method.
a. Paid interest of $7,000
b. Collected $175,000 on accounts receivable
c. Made cash sales of $128,000
d. Paid salaries of $52,000
e. Recorded depreciation expense of $27,000
f. Paid income taxes of $32,000
g. Sold equipment for cash of $152,000
h. Purchased new equipment for cash of $41,000
i. Made payments to vendors of $62,700
j. Paid dividends of$20,000
k. Purchased land for cash of $ 1 74,000
1. Paid operating expenses of $32,500