Operating Cash Flows – The following is accounting information taken from the adjusted trial balance of the Woodrail Company for 2007:
|
Debit |
Credit |
|
Sales |
$75,000 |
|
Interest revenue |
4,300 |
|
Cost of goods sold |
$43,600 |
|
Salaries expense |
13,600 |
|
Interest expense |
5,400 |
|
Income tax expense |
3,000 |
In addition, the following changes occurred in selected accounts during 2007:
|
Accounts receivable |
$5,700 credit |
|
Inventory |
9,800 debit |
|
Accounts payable |
7,000 credit |
|
Salaries payable |
900 debit |
|
Interest payable |
300 credit |
Required
Using the direct method, prepare the cash flows from operating activities section of the 2007 statement of cash flows for the Woodrail Company.