Preparing operating activities cash flow—direct method
The accounting records of Fuzzy Dice Auto Parts reveal the following:
|
Payment of salaries and wages |
$ 31,000 |
Net income |
$ 21,000 |
|
Depreciation |
13,000 |
Payment of income tax |
11,000 |
|
Payment of interest |
16,000 |
Collection of dividend revenue |
6,000 |
|
Payment of dividends |
6,000 |
Payment to suppliers |
54,000 |
|
Collections from customers |
117,000 |
Requirement
1. Compute cash flows from operating activities using the direct method.